Asset Entities Approves Merger with Strive to Form $1.5 Billion Bitcoin Treasury Firm
Shares of marketing company Asset Entities (ASST) surged 52% in after-hours trading Tuesday after shareholders voted to merge with Strive Enterprises, a firm co-founded by Vivek Ramaswamy, to establish a dedicated Bitcoin treasury company.
The merger, which received strong shareholder support, will see the combined entity rebranded as Strive, Inc., continuing to trade under the ASST ticker. The company plans to raise $1.5 billion to acquire Bitcoin, aiming to hold approximately 13,450 BTC at current market prices.
Leadership and Structure
Matt Cole, CEO of Strive Asset Management, a Strive subsidiary, will lead the merged company. Arshia Sarkhani, CEO and president of Asset Entities, will assume the roles of chief marketing officer and board member. The specific role of Ramaswamy, Strive’s co-founder and prominent entrepreneur, remains unspecified.
Funding and Market Context
Strive plans to finance its Bitcoin purchases through a $750 million Private Investment in Public Equity (PIPE) and an additional $750 million potentially raised via warrant exercises tied to the PIPE. This reverse-merger approach is viewed as a more stable alternative to Special Purpose Acquisition Companies (SPACs), mitigating risks related to speculative capital and uncertain deal timelines.
The merger is subject to customary closing conditions, including approval of Strive’s listing application by Nasdaq.
Strategic Bitcoin Acquisition and Market Position
Strive intends to join the growing cohort of public companies holding significant Bitcoin reserves, a trend that has contributed to Bitcoin’s price rally to approximately $124,450. The company has also indicated interest in acquiring up to 75,000 Bitcoin linked to claims from the Mt. Gox bankruptcy, aiming to purchase these assets at a discount. This strategy, however, requires further shareholder approval.
Currently, public companies collectively hold around 1 million Bitcoin, representing over 5% of circulating supply. Michael Saylor’s MicroStrategy leads with over 638,000 BTC, followed by Marathon Digital Holdings and 21Shares.
Background on Strive and Asset Entities
Founded in 2022 by Anson Frericks and Vivek Ramaswamy, Strive has amassed $2 billion in assets since its inception. Ramaswamy is known for his biotech entrepreneurship and political campaigns, including a recent presidential bid and an upcoming gubernatorial run in Ohio.
Before the merger, Asset Entities primarily operated as a social media marketing firm without direct involvement in cryptocurrency.
FinOracleAI — Market View
The merger announcement and planned $1.5 billion Bitcoin acquisition are likely to exert positive short-term pressure on Asset Entities’ stock, as investors react to the company’s transition into a Bitcoin treasury entity. The reverse-merger structure reduces some risks compared to SPACs, but the deal still depends on regulatory approval and successful capital raises. Market participants should monitor progress on Nasdaq clearance, PIPE subscription levels, and developments regarding Mt. Gox claims acquisition, which could further impact the company’s Bitcoin holdings and valuation.
Impact: positive
