Strive and Asset Entities Announce Merger to Create First Public Bitcoin Asset Management Firm

By: coin central|2025/05/08 08:45:02
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TLDRStrive merges with Asset Entities to launch a public Bitcoin asset manager.Investors can swap BTC for shares tax-free under Section 351.Firm to raise $1B to grow its Bitcoin treasury.Strive targets BTC outperformance with minimal shareholder dilution.Merger joins Strive with major BTC treasury players like Tether. Strive Asset Management has announced a strategic merger with Asset Entities Inc. (NASDAQ: ASST), a digital marketing and content delivery company. The merger aims to create the first publicly traded Bitcoin asset management firm operating under the Strive brand. Upon completion, the combined entity will remain listed on the NASDAQ exchange and become a key participant in the growing “Bitcoin treasury” sector. Strive, a subsidiary of Strive Enterprises, currently oversees approximately $2 billion in assets under management. The merged company plans to adopt a unique model where Bitcoin serves as the benchmark for its capital deployment strategies. According to the announcement, this structure will support a long-term investment model designed to outperform Bitcoin returns by utilizing BTC as the performance hurdle.Innovative BTC-to-Equity Exchange StrategyOne of the merger’s most notable features is its reverse merger structure. Strive plans to introduce a “first-of-its-kind” offering that allows investors to exchange Bitcoin for shares of the combined entity in a tax-free manner, under Section 351 of the U.S. tax code. This provision permits tax-free exchanges of appreciated assets for equity, potentially attracting long-term holders of BTC.Strive CEO Matt Cole highlighted this mechanism as a key differentiator. At the Strategy World conference, he emphasized how this model offers original Bitcoin holders the chance to transfer appreciated BTC into equity without triggering capital gains taxes. The goal is to build a substantial BTC reserve in a minimally dilutive way to shareholders.Capital Raise and Treasury Expansion PlansThe merger also enables immediate access to a shelf registration statement, which the combined firm plans to use to raise $1 billion through equity and debt offerings. Shelf registrations allow companies to register securities for future issuance, providing flexibility in capital raising without committing to immediate sales.JUST IN: Vivek Ramaswamy's Strive Asset Management plans to raise $1 billion to form the first publicly traded asset management firm with a $BTC treasury company. pic.twitter.com/VdxHdg1ji6— Whale Insider (@WhaleInsider) May 7, 2025This capital influx will support the company’s broader objective of building a robust Bitcoin treasury and creating financial structures that maximize leverage with downside protections. According to Cole, these measures aim to exceed the capabilities of current Bitcoin treasury companies.Positioning in the Bitcoin Treasury SectorThe merger places Strive alongside other firms embracing the Bitcoin treasury strategy. These companies seek to offer investors BTC exposure through publicly traded equity rather than direct token ownership.By combining asset management expertise with innovative Bitcoin acquisition models, Strive and Asset Entities are positioning the merged firm as a pioneer in the evolving landscape of public Bitcoin finance. The post Strive and Asset Entities Announce Merger to Create First Public Bitcoin Asset Management Firm appeared first on CoinCentral.

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