Strive Asset Management Plans $1 Billion Bitcoin Treasury

Strive Asset Management, founded by entrepreneur and former US presidential candidate Vivek Ramaswamy, has announced its ambitious plan to become a Bitcoin treasury company. The firm revealed on May 7 that it will go public through a reverse merger with asset entities, a Nasdaq-listed social media marketing company. This strategic move will allow Strive to leverage its public market access to finance large-scale Bitcoin purchases, aiming to raise up to $1 billion in equity and debt. The merged entity will continue under the Strive brand, with the goal of building a substantial Bitcoin reserve and offering Bitcoin holders a tax-efficient way to exchange their holdings for public stock.

Strive’s decision to pivot towards Bitcoin as a strategic reserve asset comes at a time when institutional demand for the cryptocurrency is on the rise, driven by macroeconomic uncertainty. The firm plans to use all available mechanisms to develop a Bitcoin “war chest” and pursue a long-term strategy that could outperform Bitcoin itself. This move aligns with a growing trend among companies to adopt Bitcoin as a reserve asset, a strategy that has seen significant success for firms like Strategy, whose stock prices have soared in recent years.

The announcement by Strive Asset Management underscores the increasing interest in corporate Bitcoin treasuries, which have collectively amassed approximately $74 billion in BTC. Ramaswamy, who launched Strive in 2022 with a mission to "harness the power of capitalism," has maintained a close political alignment with President-elect Donald Trump. Despite running against Trump in the 2023 Republican primaries, Ramaswamy ultimately endorsed him, further solidifying his political stance.

Ask Aime: How will Strive Asset Management's Bitcoin treasury strategy impact the crypto market?

In addition to Strive’s plans, Bitcoin-backed lending is also gaining traction. Seamus Rocca, CEO of xapo Bank, highlighted the shift in investor mindset, noting that holders are increasingly borrowing against their BTC instead of selling. This trend is driven by rising confidence in the market and the tailwinds from developments like Bitcoin ETFs. Xapo Bank introduced a new lending product in March, allowing qualified users to borrow up to $1 million in US dollars against their Bitcoin holdings. The bank offers loan-to-value ratios of 20%, 30%, and 40%, enabling clients to access liquidity while minimizing risk. Rocca explained that even with a conservative 20% LTV ratio, early adopters with large Bitcoin holdings can borrow significant sums without having to sell their assets, as Bitcoin would need to fall below $40,000 to trigger liquidation.

Rocca emphasized that these loans provide a practical alternative for holders who may need funds for unexpected expenses, allowing them to retain their exposure to BTC and simply pay interest on their loans. This strategy helps investors manage real-life financial needs without compromising their long-term crypto positions. With institutional adoption accelerating and the crypto market continuing to mature, Rocca believes more Bitcoin holders will look to access liquidity through borrowing rather than selling.

Meanwhile, hive digital Technologies is expanding its Bitcoin mining operations in Paraguay, attracted by the region's low-cost hydro power and pro-investment environment. The company plans to boost its capacity to 300 MW and 25 EH/s by September 2025. Hive’s president and CEO Aydin Kilic highlighted the importance of local engagement, noting that the company prioritized hiring, training, and vendor relationships to create a stable support ecosystem that enhances efficiency. Despite a proposed mining ban in Paraguay due to concerns over electricity consumption and potential rate hikes, Hive is in active dialogue with local policymakers to shape more favorable regulatory outcomes. The company is also diversifying globally with operations in Canada, Sweden, and a new headquarters in San Antonio, Texas, to mitigate risks tied to global trade tensions and regional instability.

Kilic described Bitcoin mining profitability as a “physics equation,” where controlling variables like operational expenses, power costs, and machine uptime is crucial for driving consistent performance. He added that regardless of scale, the key to success lies in maximizing efficiency and maintaining disciplined treasury management. Hive’s strategic moves in Paraguay and its global diversification efforts reflect a broader trend in the crypto industry, where companies are seeking to optimize their operations in response to evolving market conditions and regulatory landscapes.