Bitcoin’s New Kingmaker: How a Merger Could Reshape Digital Wealth

Asset Entities Inc. (ticker ASST) shareholders have approved the merger with Strive Enterprises, a pivotal step in the transformation of the combined entity into a Bitcoin-focused digital asset treasury company. The merger, announced in May, allows for the creation of a “first-of-its-kind” tax-free exchange of Bitcoin for equity under Section 351 of the U.S. tax code. The rebranded company will operate under the name Strive, Inc., continue to trade under the ASST ticker on Nasdaq, and feature Matt Cole as CEO and Chairman, while Arshia Sarkhani, former CEO of Asset Entities, will serve as Chief Marketing Officer and board member.

The approval of the merger has already triggered a strong market reaction, with ASST shares rising 17% in regular trading and another 35% in after-hours trading following the announcement. The transaction includes a $750 million private investment in public equity (PIPE) financing, with an additional $750 million potentially available through warrant exercises, which could bring total gross proceeds to over $1.5 billion. This substantial capital infusion positions the newly formed company to pursue strategic Bitcoin accumulation, leveraging a zero-debt profile and disciplined, long-term investment strategies.

Strive Enterprises, co-founded in 2022 by Vivek Ramaswamy, has a track record of growth, having launched its first ETF in 2022 and now managing over $2 billion in assets through its SEC-registered investment adviser, Strive Asset Management. The firm's strategic pivot into Bitcoin treasury operations aligns with broader trends of institutional and corporate adoption. Notably, Japanese firms such as MetaPlanet and Convano are increasingly viewing Bitcoin as a strategic asset, with MetaPlanet holding approximately 20,136 BTC valued at $2.07 billion and Convano planning to accumulate 21,000 BTC by 2027 as a hedge against yen weakness. These developments underscore the growing acceptance of Bitcoin as a reserve asset across diverse industries and geographies.

The merger also highlights the evolving infrastructure supporting Bitcoin, as more investors and institutions seek structured products to manage risk while capturing upside potential. Cantor Fitzgerald, for instance, recently launched a gold-protected Bitcoin fund designed to provide exposure to Bitcoin while hedging against downside risk with gold-backed capital protection. Similarly, financial advisors are increasingly recommending Bitcoin allocations ranging from 1% to 5% within diversified portfolios, citing its potential to enhance risk-adjusted returns and provide diversification from traditional assets.

While Bitcoin’s volatility remains a concern, its unique characteristics—such as its fixed supply cap and independence from traditional monetary policy—have drawn attention from both institutional and individual investors. The combined company under the Strive umbrella aims to leverage these characteristics through sophisticated strategies that seek to outperform Bitcoin itself over time. These include yield generation, strategic trading, and other mechanisms to enhance returns beyond simple coin accumulation. The company’s emphasis on maximizing Bitcoin per share for investors signals a clear alignment with shareholder interests in the digital asset space.

The ongoing evolution of the Bitcoin ecosystem, from regulatory clarity to corporate adoption, continues to drive its integration into traditional finance. With global adoption increasing and infrastructure expanding—including Bitcoin ETFs, institutional treasuries, and corporate balance sheets—Bitcoin is being positioned as a central player in modern wealth management strategies. The merger between Asset Entities and Strive Enterprises represents another milestone in this transformation, as it consolidates resources, capital, and strategic direction into a unified platform focused on long-term value creation in the digital asset space.