Strive Asset Management to Merge with Asset Entities and Go Public
Shares of Asset Entities (ASST) increased by 194% following the announcement of its merger with Strive Asset Management, forming a publicly traded Bitcoin Treasury Company.
- The reverse merger will operate under the Strive name and be listed on NASDAQ.
- Strive intends to establish a significant bitcoin reserve using innovative investment strategies to minimize shareholder dilution.
- A key strategy includes an equity-for-bitcoin swap for accredited investors, utilizing Section 351 tax provisions for tax-free asset contributions in exchange for stock.
- The transaction will not include a premium over the company's current price.
- Strive CEO Matt Cole plans to use bitcoin as a benchmark for capital deployment, aiming to outperform it through various strategies.
- The company seeks to raise $1 billion post-merger via an effective shelf registration for funding bitcoin acquisitions.
- Since launching in 2022, Strive has managed approximately $2 billion and advocates for bitcoin adoption among corporate treasuries.