"Strive's Bold Bet: A $1.5B Treasury to Store 13,450 Bitcoin"

Asset Entities shares surged over 50% in after-hours trading on Tuesday following shareholder approval of a merger with Strive Enterprises to form a $1.5 billion Bitcoin treasury company. The newly merged entity will operate under the name Strive, Inc. and continue to trade under the ticker symbol ASST. The company plans to raise $750 million through a Private Investment in Public Equity (PIPE) offering and an additional $750 million from the exercise of warrants issued in the PIPE.

The $1.5 billion raise would allow the new company to purchase approximately 13,450 Bitcoin at current market prices, positioning it among the top 10 largest corporate Bitcoin holding firms. This move is part of a broader trend of public companies acquiring Bitcoin, with the total number of public companies holding Bitcoin increasing from less than 100 at the beginning of the year to 186. Public companies now hold a combined 1,000,698 Bitcoin, accounting for 5.1% of the total supply in circulation. Michael Saylor’s Strategy remains the largest corporate holder of Bitcoin with 636,505 BTC, while MARA Holdings and XXI rank second and third with 52,477 BTC and 43,514 BTC, respectively.

Strive’s merger with Asset Entities represents a safer capital-raising strategy compared to SPACs, as it relies less on speculative capital and uncertain timelines. The new company plans to use the reverse-merger structure to fund its Bitcoin treasury, which is expected to provide more stability and investor confidence. Additionally, Strive has expressed interest in acquiring 75,000 Bitcoin tied to the collapsed Mt. Gox crypto exchange, which would further enhance its Bitcoin-per-share ratio. This strategy could potentially increase the firm’s appeal to investors seeking exposure to Bitcoin without the volatility associated with direct ownership.

The merger marks a significant milestone in the corporate adoption of Bitcoin, as the combined entity will join a growing list of companies using Bitcoin to bolster their balance sheets. The increased demand for Bitcoin from public companies has contributed to the cryptocurrency’s price rally, which reached an all-time high of $124,450. Companies such as Metaplanet and Semler Scientific are also pursuing aggressive Bitcoin accumulation strategies, with Metaplanet aiming to hold 210,000 BTC and Semler Scientific planning to accumulate 105,000 BTC by the end of 2027.

Strive’s CEO, Matt Cole, will lead the merged company, while Asset Entities’ CEO and president, Arshia Sarkhani, will serve as chief marketing officer and board member. It remains unclear what role Vivek Ramaswamy, Strive’s co-founder, will play in the new firm. The merger is contingent upon the approval of Strive’s listing application by The Nasdaq Stock Market LLC. The new company will aim to build a strong foundation for its Bitcoin treasury strategy, leveraging both the capital markets and its strategic focus on Bitcoin as a long-term investment.