Asset Entities Soars 194% on Strive Merger to Form Bitcoin Treasury Firm

Shares of Asset Entities (NASDAQ: ASST) surged 194% on Wednesday following news that Strive Asset Management will merge with the company in a strategic move to create a publicly traded Bitcoin (BTC) Treasury Company. The merger, structured as a reverse merger, will result in the combined entity operating under the Strive name while remaining listed on NASDAQ.

Strive plans to accumulate a significant bitcoin reserve through innovative investment strategies aimed at reducing shareholder dilution. A key element includes an equity-for-bitcoin exchange targeting accredited investors. The transaction will utilize Section 351 of the U.S. tax code, which allows tax-free asset transfers in exchange for corporate stock under specific conditions. According to the press release, the deal carries no premium above the transaction price.

Strive CEO Matt Cole, a former $70 billion fixed income portfolio manager, stated the firm’s goal is to outperform bitcoin by using it as a capital allocation benchmark. Strive intends to merge with overcapitalized firms to access discounted cash, use leverage strategically, and employ structured financial products to mitigate risk.

Post-merger, the company aims to scale its capital-raising capacity up to $1 billion through an effective shelf registration. This setup allows Strive to fund future bitcoin acquisitions through flexible equity and debt issuance.

Since launching in 2022, Strive has grown its assets under management to $2 billion, gaining recognition for its anti-ESG investing stance. The merger marks a pivotal move to promote bitcoin adoption in corporate treasury strategies, with plans to encourage portfolio companies to adopt similar reserves.

This deal positions Strive as a bold player in bridging traditional finance and digital asset reserves, aiming to pioneer a new model for treasury management.