Strive Asset Management Merges with Asset Entities Inc. to Create the First Publicly Traded Bitcoin Asset Management Firm

Investment firm Strive Asset Management, founded by Vivek Ramaswamy, is merging with Asset Entities Inc. (NASDAQ:ASST) to form the first publicly traded Bitcoin asset management firm operating under the Strive brand.

The combined entity will continue to be listed on the NASDAQ exchange and will also become a key player in the growing “Bitcoin treasury” sector, aiming to outperform BTC returns with a unique capital deployment strategy.

Strive, a subsidiary of Strive Enterprises, currently manages around $2 billion in assets. The merged company will adopt a structure where Bitcoin serves as the benchmark for its capital deployment strategies.

This model is designed to support a long-term investment model structured to outperform Bitcoin returns, with BTC acting as the performance hurdle.

One of the merger’s most notable features is its reverse merger structure, which will see Strive introduce a “first-of-its-kind” offering. This offering will allow investors to exchange Bitcoin for shares of the combined entity in a tax-free manner, utilizing 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.

At the Strategy World conference, Strive CEO Matt Cole highlighted this mechanism as a key differentiator.

“We're creating a unique opportunity for original Bitcoiners to transfer their appreciated BTC into equity without triggering capital gains taxes,” said Cole.

The goal is to build a substantial BTC reserve in a minimally dilutive way to shareholders.

The merger also grants 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 enable 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 merge with Asset Entities (ASST) to form the first publicly traded asset management firm with a $BTC treasury company.

This follows several firms adopting a 'Bitcoin treasury' strategy in an attempt to offer investors exposure to BTC through publicly traded equity rather than direct token ownership.

This capital will support the company’s broader objective of building a robust Bitcoin treasury and creating financial structures that maximize leverage with downside protections, exceeding the capabilities of current Bitcoin treasury companies, according to Cole.

“We believe this combination will create tremendous value for shareholders of both companies and position the merged company for strong growth in the years to come,” said Chaim Mark, CEO of Asset Entities.

“We are excited to welcome Strive to the public markets and look forward to working with the team to build a Bitcoin asset management firm that will be a leader in the industry.”