Strive Asset Management is making a strategic move by merging with Asset Entities Inc., with a focus on becoming a Bitcoin-focused treasury company. This merger, as announced on May 7th, will see the combined firm operating under the Strive name and continuing to trade on NASDAQ. This bold decision positions Strive as the first publicly listed asset manager fully aligned with the Bitcoin Standard.
Ben Pham, the CFO of Strive, expressed the company’s intention to utilize innovative financial strategies to maximize exposure to Bitcoin. One such strategy involves offering company equity in exchange for Bitcoin, structured in a way to avoid triggering taxable events for BTC holders. Additionally, Strive plans to acquire undervalued or overcapitalized companies to access cash at a discount, leveraging its expertise in fixed income and derivatives to strengthen its balance sheet and expand its Bitcoin acquisition capabilities.
The firm aims to raise up to $1 billion in capital through equity and debt offerings to accelerate its accumulation strategy. The reverse merger structure provides immediate access to capital markets, eliminating regulatory delays typical of public offerings. This flexibility is expected to support Strive’s rapid growth plans and align shareholder interests with the Bitcoin treasury thesis.
Strive’s strategic pivot reflects a broader trend of corporate interest in Bitcoin. Cantor Fitzgerald, in partnership with Tether, and Japan’s Metaplanet are among the firms that have recently shown significant interest in acquiring Bitcoin. Analysts at Bernstein predict $330 billion in corporate inflows into Bitcoin over the next five years, with Strategy leading the charge in the public Bitcoin Treasury model. Smaller players like Strive are working to replicate this success and capitalize on the growing institutional interest in Bitcoin.
As the cryptocurrency landscape continues to evolve, companies like Strive Asset Management are strategically positioning themselves to navigate the digital asset market and capitalize on the opportunities presented by Bitcoin. This shift towards a Bitcoin-focused treasury model reflects a growing trend in the corporate world and highlights the increasing importance of digital assets in the financial sector.