Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Asset Entities (ASST) shareholders have approved a merger with Vivek Ramaswamy’s Strive Enterprises, a move set to transform the social media marketing firm into a Bitcoin treasury company. The newly formed entity, to be renamed Strive, Inc., aims to raise a substantial $1.5 billion to acquire Bitcoin, triggering an over 50% surge in Asset Entities’ shares in after-hours trading on Tuesday.
The Merger Details
A “strong majority” of Asset Entities shareholders voted in favor of the merger. The combined company will continue trading under the ASST ticker on Nasdaq.
Following the announcement, Asset Entities shares, which had closed up 17.8% at $6.28 on Tuesday, rallied by more than 52% after-hours to reach $9.55.
Matt Cole, CEO of Strive Enterprise subsidiary Strive Asset Management, is slated to lead the merged company. Asset Entities CEO and President Arshia Sarkhani will assume the roles of Chief Marketing Officer and a board member, though the specific role of Strive co-founder Vivek Ramaswamy in the new firm remains unclear.
Funding and Bitcoin Acquisition Strategy
The company plans to fund its ambitious $1.5 billion Bitcoin acquisition through a two-pronged approach. This includes $750 million from a Private Investment in Public Equity (PIPE) and an additional $750 million from the potential exercise of warrants issued alongside the PIPE.
At current market prices, this funding target would enable Strive to purchase approximately 13,450 Bitcoin, a quantity that would position it among the top 10 largest corporate Bitcoin holding companies globally.
Strive opted for a reverse-merger structure, which is generally considered a safer approach than special purpose acquisition companies (SPACs). This method is perceived to rely less on speculative capital raises, dilution, and uncertain deal timelines.
Prior Ambitions and Market Context
When the merger was initially announced in May, Strive had expressed an interest in acquiring up to 75,000 Bitcoin from claims tied to the collapsed crypto exchange Mt. Gox. This strategy aimed to purchase the asset at a discount and potentially boost its Bitcoin-per-share ratio, contingent on a successful shareholder vote.
Asset Entities, prior to this merger, was a social media marketing firm with no direct involvement in Bitcoin or the broader cryptocurrency industry. Its transformation highlights a growing trend among public companies to integrate Bitcoin into their corporate treasuries.
The new firm joins a cohort of 186 public companies globally that have reported significant Bitcoin holdings. Collectively, these public entities now hold approximately 1 million Bitcoin, accounting for about 5.1% of the total circulating supply.
Path Forward
The finalization of the merger remains contingent on several conditions, including the successful clearance of Strive’s listing application by The Nasdaq Stock Market LLC.
The merger of Asset Entities and Strive represents a significant strategic pivot, aiming to establish a major corporate player in the Bitcoin treasury space. With plans to raise $1.5 billion for Bitcoin acquisitions, the new Strive, Inc. signals a continued institutional embrace of the leading cryptocurrency, as evidenced by the immediate positive market reaction to the shareholder approval.
