Strive Asset Management to Go Public, Launch Bitcoin Treasury Strategy With Merger

Shares of tech institution Asset Entities (ASST) roseate 194% connected Wednesday aft it announced that Strive Asset Management was merging with the NASDAQ-listed institution to go a publically traded Bitcoin (BTC) Treasury Company.

The deal, structured arsenic a reverse merger, volition permission the combined institution operating nether the Strive sanction and listed connected the NASDAQ. Strive plans to physique a sizable bitcoin reserve utilizing caller concern and financing strategies designed to bounds shareholder dilution.

One cardinal strategy is simply a planned equity-for-bitcoin swap disposable to definite accredited investors, the companies stated successful the property release. The speech volition usage a taxation proviso known arsenic Section 351, which allows appreciated assets to beryllium contributed to a corp tax-free successful instrumentality for stock, taxable to idiosyncratic circumstances. The woody volition not transportation a premium to the company's transaction price, according to the announcement.

Strive CEO Matt Cole, formerly a $70 cardinal fixed income portfolio manager, said the institution aims to outperform bitcoin by utilizing it arsenic a benchmark for superior deployment. Strategies volition see merging with overcapitalized firms to entree discounted cash, employing leverage, and deploying structured products to hedge risk.

The institution plans to grow its superior raising capableness to $1 cardinal post-merger done an effectual support registration, offering flexibility to money bitcoin purchases via equity and indebtedness sales.

Strive has grown rapidly since launching successful 2022, managing astir $2 cardinal and gaining attraction for its absorption to ESG mandates. The merger, according to the company, is simply a adjacent measurement successful pushing for bitcoin adoption crossed firm treasuries, a extremity it volition besides advocator for among companies held successful its funds.

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