Ramaswami's Strive raises $750M for 'alpha-generating' Bitcoin buy strategy

Strive, an asset management firm spearheaded by Vivek Ramaswamy, secured a substantial $750 million private investment to fuel its Bitcoin-centric investment strategies. This funding round, potentially expandable to $1.5 billion with warrant exercises, marks a significant step in Strive’s ambitious plan to build a substantial Bitcoin treasury and subsequently go public via a merger with Asset Entities.

The investment strategy focuses on generating alpha through diversified Bitcoin-related acquisitions. This includes acquiring undervalued biotech companies, a sector where Ramaswamy possesses considerable experience, leveraging his background with Roivant Sciences. A key component involves purchasing “distressed Bitcoin claims,” such as those arising from bankruptcies like Mt. Gox. Strive aims to acquire a considerable portion of the available Mt. Gox Bitcoin claims, totaling approximately $7.9 billion. The strategy also incorporates acquiring discounted tranches of Bitcoin credit vehicles.

Strive’s CEO, Matt Cole, emphasizes the need for a novel valuation framework to assess these unique assets, enabling the firm to achieve superior returns relative to Bitcoin’s price alone. The $1.35 per share pricing of the private investment represents a 121% premium over Asset Entities’ pre-announcement closing price. Notably, the financing avoids debt, preserving future leverage capacity. The partnership with Asset Entities, a social media marketing firm, is central to Strive’s go-public strategy.

This move comes after Strive’s early May announcement of its Bitcoin treasury plans and its November 2024 launch of Bitcoin offerings to clients, including an attempted Bitcoin bond ETF. The firm’s aggressive approach to Bitcoin acquisition positions it as a potential top-five holder of Bitcoin treasury assets, underscoring the significant commitment to this novel investment strategy. The timing is notable, given President Trump’s executive order establishing a national Bitcoin reserve and the ongoing debate surrounding the Trump family’s own Bitcoin ventures.