Vivek Ramaswamy’s Strive plans to grow its Bitcoin reserves by purchasing distressed Bitcoin claims at a lower price. The company intends to start by handling claims linked to 75,000 Bitcoin from the failed crypto exchange Mt. Gox.
On May 20, Strive revealed it had partnered with 117 Castell Advisory Group LLC to deal with these claims. The rulings have been made, but Bitcoin has not yet been distributed.
By buying these claims, Strive can get Bitcoin for less than the market price and increase the number of Bitcoin per share before completing the reverse merger with Asset Entities.
The merger is planned to happen by mid-2025. Strive has not disclosed how many Bitcoin it holds, but it says it experiences fewer limits than companies using SPAC mergers for their IPOs.
Strive must get shareholder approval before filing paperwork with the SEC to pursue Mt. Gox claims. Next, it will send out a proxy statement to request shareholders’ approval. Mt. Gox is aiming to return all the money to creditors by October 31.
In 2014, Mt. Gox, the biggest Bitcoin exchange, closed because it lost approximately 750,000 Bitcoin in a hack. Strive’s decision to become a Bitcoin treasury company is part of a trend in which companies invest in Bitcoin for the long run.
After the news, Asset Entities’ shares rose 18.2% on May 20, making the company worth $122 million. As a result of the merger, Strive will control 94.2% of the new company, which will be listed as ASST. With this strategy, Strive could quickly become a key player in the Bitcoin world.
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