Asset Entities Inc, a digital marketing and content delivery company, has announced a merger agreement with Strive Asset Management. The merged entity will operate under the Strive brand and remain listed on the NASDAQ.
With this, the firm will become a public Bitcoin Treasury Company, using corporate strategies to build Bitcoin reserves while it delivers strong returns to its shareholders. The company also said in its press release that it plans to offer equity in exchange for Bitcoin through a structure that is intended to be tax-free under Section 351 of the U.S. tax code.
This means investors will be able to swap their Bitcoin for the company’s stock without being taxed, though this depends on individual tax circumstances. This offer will only be open to certain accredited investors prior to the transaction closing.
Strive also plans to merge with overcapitalized companies to acquire cash at a discount, and to use its expertise in fixed income and derivatives to unlock additional capital for Bitcoin purchases.
The company is looking to raise up to $1 billion after the transaction closes through equity and debt offerings to buy more Bitcoin when such purchases benefit shareholders.
Matt Cole will lead the company as CEO and Chairman. Cole previously managed $70 billion in fixed-income investments. He will be joined by Ben Pham as CFO, Arshia Sarkhani as Chief Marketing Officer, and Logan Beirne as Chief Legal Officer. Sarkhani, CEO of Asset Entities, said, “We are thrilled to be joining forces with Strive Asset Management to help pioneer the future of corporate Bitcoin treasury strategies.”
Strive Asset Management has also filed with the U.S. Securities and Exchange Commission (SEC) to launch a new investment fund. The Strive Bitcoin Bond ETF, filed on December 26, will invest in convertible bonds issued by companies like MicroStrategy, which have used bond proceeds to buy Bitcoin. These bonds can be turned into company shares and are backed by Bitcoin holdings. The ETF will also include exposure through swaps and options.
Strive Asset Management was co-founded by Vivek Ramaswamy, a former presidential candidate who recently left the company in 2023. Strive Enterprises, which has remained private, will own about 94.2% of the public company before any financing is completed.
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