Strive,Asset Entities Merge,Form Bitcoin Treasury Company

Strive Asset Management and Asset Entities have entered into a definitive merger agreement to form a publicly traded Bitcoin Treasury company. The combined entity will operate under the Strive brand and continue to be listed on NASDAQ. This merger marks a significant strategic shift for Asset Entities, transitioning from digital marketing services to a Bitcoin-focused asset management company. The new company will be led by Matt Cole, who will serve as CEO and chairman of the board.

The merged company aims to maximize Bitcoin exposure per share through various innovative strategies. One of the key initiatives is a first-of-its-kind tax-free Bitcoin-for-stock exchange under Section 351, which allows holders to contribute Bitcoin in exchange for public stock. Additionally, the company plans to acquire cash at a discount through mergers with overcapitalized companies and leverage institutional expertise to accumulate Bitcoin while hedging downside risk. The company's strategy includes using Bitcoin as "the hurdle rate for capital deployment," aligning with a Bitcoin maximalist investment thesis while adding institutional sophistication.

Post-merger ownership will be 94.2% Strive Enterprises and 5.8% Asset Entities shareholders. The company plans to expand its shelf registration to $1 billion for Bitcoin accumulation through equity and debt offerings. Strive Asset Management, which currently manages approximately $2 billion in assets, will continue to advocate for capitalism while promoting corporate Bitcoin treasury adoption. The merger represents a unique positioning that combines institutional investment expertise with cryptocurrency treasury management, potentially accelerating institutional Bitcoin adoption.

For investors seeking Bitcoin exposure through equity markets, this merger creates a unique vehicle with potential advantages over direct holdings. However, execution risks and dilution from future financings must be carefully weighed. The combined company will focus on maximizing Bitcoin exposure per share and seek to outperform Bitcoin over the long run, maximizing value for common equity shareholders. The company's multi-faceted accumulation strategy includes tax-free Bitcoin-for-equity exchanges, acquiring cash at discounts through mergers, and leveraging fixed income and derivatives expertise to accumulate Bitcoin while hedging downside risk.