Strive Asset Management Plans $1 Billion Bitcoin Treasury

Strive Asset Management, established by entrepreneur and ial candidate Vivek Ramaswamy, has announced its intention to transform into a Bitcoin treasury company. According to a May 7 statement, Strive plans to go public through a reverse merger with Asset Entities, a social media marketing company listed on the Nasdaq. The combined entity will operate under the Strive brand and utilize its access to public equity markets to finance Bitcoin purchases.

Upon the completion of the deal, Strive aims to issue approximately $1 billion in equity and debt, with the proceeds earmarked for accumulating Bitcoin (BTC). The asset manager has stated its intention to employ all available mechanisms to build a substantial Bitcoin reserve and develop a long-term investment strategy designed to outperform Bitcoin. Additionally, Strive plans to allow Bitcoin holders to contribute their holdings in exchange for public stock through a tax-free structure. As of May 7, the company manages approximately $2 billion in net assets across various funds.

In December, Strive filed to list an exchange-traded fund (ETF) investing in convertible bonds issued by MicroStrategy and other corporate Bitcoin buyers. This move aligns with the growing trend of corporate Bitcoin treasuries, which have gained popularity since the approval of Bitcoin ETFs. Companies adopting this approach, such as MicroStrategy, have seen significant increases in their share prices. Analysts suggest that adding Bitcoin to corporate treasuries can serve as a valuable hedge against fiscal deficits, currency debasement, and geopolitical risks.

Corporate Bitcoin treasuries collectively hold a substantial amount of BTC, reflecting the increasing interest in Bitcoin as a strategic asset. Ramaswamy, an outspoken ally of President-elect Donald Trump, founded Strive in 2022 with the goal of helping investors harness the power of capitalism. In 2023, Ramaswamy, who earned his $1 billion net worth from biotechnology startup Roivant Sciences, campaigned against Trump in the Republican presidential primary before later endorsing the president-elect.