Shares in the marketing firm Asset Entities experienced a notable surge, rising 52% in after-hours trading, following the approval of a merger with Vivek Ramaswamy’s Strive Enterprises to create a new Bitcoin treasury company. Asset Entities announced that a “strong majority” of its shareholders voted in favor of the merger, which includes plans to raise $1.5 billion to purchase Bitcoin (BTC). The newly formed company will be rebranded as Strive, Inc. and will continue trading under the ticker symbol ASST.
Upon the market closing on Tuesday, Asset Entities shares had already risen by 17.8% to $6.28, but skyrocketed by over 52% to $9.55 in after-hours trading, reflecting strong investor sentiment regarding the merger announcement. Matt Cole, the CEO of Strive Asset Management, will spearhead the operations of the combined entity, while Arshia Sarkhani, the current CEO and president of Asset Entities, will take on the roles of chief marketing officer and board member. The specific future role of Ramaswamy, who co-founded Strive, in the new company remains uncertain.
This merger is part of a larger trend, with 186 public companies now involved in substantial Bitcoin acquisitions—up from less than 100 at the beginning of the year. Such a surge has led to concerns regarding market saturation. The collective activity in Bitcoin purchasing has significantly influenced its current price, which stands at $124,450. Entities are increasingly using various financial mechanisms, including equity raises and Special Purpose Acquisition Companies (SPACs), to fund their cryptocurrency plans.
Strive has chosen a reverse-merger structure, which is perceived as a more stable approach compared to SPACs, due to its reduced reliance on speculative capital, dilution, and uncertainty. The $1.5 billion funding target includes $750 million anticipated from a Private Investment in Public Equity (PIPE), as well as an additional $750 million potentially generated from the exercise of warrants associated with the PIPE. This capital infusion would enable the firm to acquire approximately 13,450 Bitcoin at current valuations, positioning it among the top 10 corporate Bitcoin holders.
The merger’s finalization is subject to various conditions, which include receiving approval for Strive’s listing application from The Nasdaq Stock Market LLC. In a related development, Strive has expressed interest in acquiring 75,000 Bitcoin from claims connected to the bankrupt crypto exchange Mt. Gox, hoping to obtain the asset at a discounted rate. This strategy aims to enhance its Bitcoin-per-share ratio—a critical metric in the growing Bitcoin treasury landscape. However, further shareholder approval will be necessary to move forward with these Mt. Gox claims.
Strive, launched in 2022 by Anson Frericks and Ramaswamy, has amassed $2 billion in assets in a short span of time. Asset Entities, traditionally a social media marketing firm, had no prior engagements in the Bitcoin or crypto markets prior to the merger announcement.
In terms of corporate Bitcoin ownership, public companies now collectively hold around 1 million Bitcoin, accounting for 5.1% of the total Bitcoin supply in circulation. Leading the Bitcoin accumulation is Michael Saylor’s company, with a record holding of 638,460 BTC valued at approximately $71.2 billion. Other notable players include MARA Holdings and XXI, holding 52,477 BTC and 43,514 BTC, respectively.
