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Strive, Vivek Ramaswamy’s investment firm, is strategically acquiring distressed Bitcoin claims to bolster its Bitcoin holdings. Their initial target involves claims linked to 75,000 Bitcoin from the defunct Mt. Gox exchange. This acquisition strategy, detailed in a May 20 regulatory filing, leverages a partnership with 117 Castell Advisory Group LLC. The focus is on claims with definitive legal rulings but awaiting distribution, allowing Strive to acquire Bitcoin at a discounted price, thereby increasing its Bitcoin-per-share ratio. This move precedes Strive’s planned reverse merger with Asset Entities, anticipated for mid-year.
While Strive hasn’t publicly disclosed existing Bitcoin holdings, it highlights the advantage of a reverse merger over a SPAC merger for acquiring Bitcoin, suggesting fewer restrictions. Shareholder approval is required for the Mt. Gox claims purchase, necessitating an SEC filing outlining the transaction terms, followed by a proxy statement for shareholder vote. Time is of the essence, as Mt. Gox aims to complete creditor repayments by October 31st.
Mt. Gox, once the largest Bitcoin exchange, suffered a significant security breach in 2014, leading to the theft of approximately 750,000 Bitcoin. Strive’s shift towards becoming a Bitcoin treasury company reflects a growing industry trend, with firms increasingly viewing Bitcoin as a long-term strategic asset. This strategy mirrors other emerging Bitcoin treasury firms like Twenty One Capital, backed by prominent investors such as Tether, SoftBank, and Cantor Fitzgerald, planning to launch with 42,000 Bitcoin post-merger.
The announcement of Strive’s merger with Asset Entities (ASST) has significantly impacted ASST’s share price. On May 20th, ASST shares closed 18.2% higher at $7.74, boosting its market capitalization to $122.1 million—a 1,170% increase since the merger announcement. Upon merger completion, Strive is projected to hold 94.2% of the combined entity, with Asset Entities retaining 5.8%. The merged entity will retain the name Strive and Asset Entities, trading under the ASST ticker. This strategic acquisition and merger highlight the increasing institutional interest in Bitcoin as a long-term investment.
