TLDR
- Strive aims to acquire 75,000 Bitcoin through distressed Mt. Gox exchange claims at a discount
- The company partnered with 117 Castell Advisory Group LLC to target legally approved BTC claims awaiting distribution
- Strive is pursuing a reverse merger with Asset Entities expected to close by mid-2024
- Asset Entities (ASST) stock has surged 1,170% since the merger announcement
- Mt. Gox plans to fully repay creditors by October 31, creating a deadline for Strive’s acquisition plans
In a move that could reshape its financial strategy, Strive Asset Management has revealed plans to build a 75,000 Bitcoin treasury by purchasing distressed BTC claims from the bankrupt cryptocurrency exchange Mt. Gox. According to a May 20 SEC filing, the company co-founded by Vivek Ramaswamy is targeting Bitcoin claims that have already received legal approval but are still awaiting distribution.
Strive has partnered with 117 Castell Advisory Group LLC to pursue these claims. The strategy would allow Strive to acquire Bitcoin at below-market prices, helping to boost its Bitcoin-per-share ratio ahead of its planned reverse merger with Asset Entities.
The company must obtain shareholder approval before proceeding with the Mt. Gox claims purchases. Strive plans to file detailed terms of the proposed transactions with the SEC and will seek formal shareholder approval through a proxy statement.
Time is of the essence for Strive’s plans. Mt. Gox is expected to fully repay its creditors by October 31, creating a deadline for Strive to secure shareholder approval and complete the acquisitions.
Corporate Bitcoin Adoption Trend
Strive’s Bitcoin treasury plans come amid a growing trend of companies adding Bitcoin to their balance sheets. Several corporations have made similar moves in recent weeks, citing global economic uncertainties and concerns about rising U.S. debt.
Two Nasdaq-listed firms recently announced major Bitcoin acquisition plans. Basel Medical Group Ltd entered exclusive negotiations for a $1 billion Bitcoin purchase, while Singapore-based DigiAsia announced an initial plan to buy $100 million worth of Bitcoin.
DigiAsia has committed to allocating up to 50% of its future net profits toward Bitcoin purchases. The company also plans to explore various strategies to generate returns from its Bitcoin holdings, including lending, staking, and developing crypto-linked financial products.
The Mt. Gox connection adds an interesting historical dimension to Strive’s plans. Once the world’s largest Bitcoin exchange, Mt. Gox collapsed in 2014 following a security breach that resulted in the theft of approximately 750,000 Bitcoin. The exchange has been working through bankruptcy proceedings ever since, with plans to repay creditors by late 2024.
Asset Entities (ASST), the social media marketing firm set to merge with Strive, has seen its stock price rise by 18.2% following the announcement. The company’s shares have surged an eye-opening 1,170% since Strive’s merger announcement on May 7, bringing its market capitalization to $122.1 million.
Under the terms of the reverse merger, Strive is expected to own 94.2% of the combined entity, while Asset Entities will hold the remaining 5.8%. The merged company will operate under the name Strive and Asset Entities, continuing to trade under the ASST ticker.
Strive believes its approach of going public through a reverse merger offers advantages over Special Purpose Acquisition Company (SPAC) mergers, including fewer restrictions on purchasing Bitcoin.
The company hasn’t disclosed any current Bitcoin holdings but positions itself as part of a broader industry movement viewing Bitcoin as a long-term strategic asset for corporate balance sheets.
Another player in this space is Twenty One Capital, a newly launched Bitcoin treasury firm backed by major investors including Tether, SoftBank, and Cantor Fitzgerald. The Jack Mallers-led company plans to launch with 42,000 Bitcoin after completing a blank-check merger with Cantor Equity Partners.
As more companies add Bitcoin to their treasuries, Strive’s unique approach of acquiring coins through bankruptcy claims could set a precedent for other firms looking to build Bitcoin positions at favorable prices.
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