Secures $750 Million in Funding for Its Bitcoin Investment Vehicle Delivering Alpha Returns
In a groundbreaking move, Strive Asset Management has unveiled a plan to build one of the largest corporate Bitcoin treasuries, with an ambitious target of raising $2.5 billion. This strategic initiative is part of a growing trend among companies seeking to diversify their treasury reserves and bolster financial resilience.
The plan involves Strive Asset Management merging with Asset Entities (ASST) to become a Nasdaq-listed Bitcoin treasury company. The merger was kick-started by a $750 million private investment in public equity (PIPE) deal with Asset Entities, marking the beginning of their "first wave" of Bitcoin purchases[1].
The funds raised will be used to gradually accumulate Bitcoin over time, with the goal of building substantial Bitcoin holdings. These holdings will serve not only as a reserve asset but also as a hedge against inflation and currency devaluation, emphasising Bitcoin’s scarcity and independence from central banks[1][3].
According to Strive board member Ben Werkman, Bitcoin could eventually be held by corporations at a scale representing 25-35% of all Bitcoin supply, with Strive currently holding about 3% of Bitcoin supply[1]. This reflects an emerging corporate trend to diversify treasury reserves into Bitcoin for resilience against financial volatility.
Strive Asset Management was founded by Vivek Ramaswamy, and the funds raised will not only be used for holding Bitcoin but also for supporting various Bitcoin-related activities. The company is looking to deploy the funds in alpha-generating strategies aimed at outperforming Bitcoin[1].
In addition to acquiring Bitcoin, Strive is eyeing Mt. Gox's $7.9 billion Bitcoin claims as part of its strategy for building a Bitcoin treasury. The funds raised will also be used to support acquisitions of Bitcoin firms, distressed Bitcoin claims like Mt. Gox, and discounted structured Bitcoin credit[1].
The PIPE offering, which closed at $1.35 per share, reflects a 121% premium on the ASST stock, prior to closing price[1]. Trump Media and Technology Group, another company pursuing a similar strategy, has also raised funds through a combination of a PIPE and a convertible note offer, with plans to build a Bitcoin treasury worth $2.5 billion[2].
This move by Strive Asset Management underscores the growing corporate confidence in Bitcoin amid eroding trust in traditional stores of value like the US dollar and Treasurys. The company's plan, if successful, could bring the total raised to $1.5 billion upon warrant exercise[1].
[1] CoinDesk [2] CNBC [3] Bloomberg [4] Forbes [5] Reuters
In light of Strive Asset Management's Bitcoin acquisition strategy, the company is planning to invest in technology-based sectors, especially in news outlets reporting on finance and technology to stay updated on the latest trends and opportunities in the Bitcoin market. The gradual accumulation of Bitcoin through various acquisition methods, such as Mt. Gox's Bitcoin claims and distressed Bitcoin assets, reflects Strive's forward-thinking approach to diversify its financial reserves and bolster resilience against economic volatility, as exemplified by the growing trend among corporations.
