Shares of Asset Entities Inc. (NASDAQ: ASST) surged nearly 267% to $2.26 during the latest trading session, following the announcement of a definitive merger agreement with Strive Asset Management. The newly formed entity will retain the Strive brand, continue trading on NASDAQ, and transition into a public Bitcoin Treasury Company.
A Strategic Shift Toward Bitcoin Treasury Leadership
Strive Asset Management plans to utilize a multi-faceted strategy to build a substantial Bitcoin reserve. A key objective is to accumulate Bitcoin in ways that minimize shareholder dilution while outperforming the asset over the long term. Asset Entities aims to measure its capital deployment against Bitcoin itself, setting a high bar for value creation.
To facilitate this accumulation, Strive intends to deploy proprietary investment strategies. These include offering equity in the merged entity in exchange for Bitcoin—structured under Section 351 of the U.S. tax code to allow for tax-free treatment. Additional mechanisms involve merging with cash-rich entities, using leverage, and applying advanced risk-hedging techniques through internal expertise in fixed income and derivatives.
Capital Access and Shareholder Advantage
The merger structure allows Asset Entities to immediately benefit from an effective shelf registration statement, providing a vehicle to raise up to $1 billion in capital post-closing. Funds raised through both equity and debt offerings will be allocated to Bitcoin purchases, but only when such moves are accretive to common shareholders. This financing advantage places the firm ahead of other emerging Bitcoin treasury companies.
Asset Entities also plans to offer a tax-efficient Bitcoin-for-stock exchange, accessible to select accredited investors prior to closing. This innovative approach is expected to involve no markup on transaction prices, further enhancing ASST shareholder value.
Leadership and Vision for Growth
The combined company will be led by Matt Cole as CEO and Chairman. Cole’s background in managing a $70 billion structured fixed income portfolio equips him to lead Strive’s novel Bitcoin-focused strategy. The executive team includes Ben Pham (CFO), Arshia Sarkhani (CMO), Logan Beirne (CLO), and prominent industry advisors like Ben Werkman, Jeff Walton, and Avik Roy.
Together, Asset Entities (ASST) and Strive Asset Management aim to reshape corporate Bitcoin treasury strategy, combining financial innovation with broad-scale engagement to redefine shareholder value in the digital era.
