Strive, a venture helmed by Vivek Ramaswamy, has set its sights on expanding its Bitcoin portfolio by acquiring distressed Bitcoin claims at a markdown. The initial focus is on claims attributed to 75,000 Bitcoin from the now-defunct crypto exchange Mt. Gox, which went bankrupt.
In a regulatory filing made on May 20, Strive announced its collaboration with 117 Castell Advisory Group LLC to target Bitcoin claims that have secured definitive legal decisions but are still pending distribution.
Strive believes that purchasing these claims will enable the acquisition of Bitcoin at a discounted rate, thereby boosting its Bitcoin per share ratio. This move comes ahead of its planned reverse merger with Asset Entities, projected to be finalized mid this year.
Although Strive has not disclosed any Bitcoin holdings yet, it asserts that it will encounter fewer restrictions on buying Bitcoin than companies going public via Special Purpose Acquisition Company mergers. However, to proceed with the Mt. Gox claims, it needs approval from shareholders. Accordingly, Strive plans to submit a filing to the Securities and Exchange Commission detailing the complete terms of the proposed transaction.
As Mt. Gox is estimated to fully reimburse its creditors by October 31, Strive would need to gain shareholder approval sooner rather than later.
Mt. Gox, a Japanese-based firm, was the largest Bitcoin exchange before its downfall in 2014 due to a security breach, leading to the theft of approximately 750,000 Bitcoin.
Strive’s shift towards becoming a Bitcoin treasury company mirrors an industry-wide trend where more firms are opting to retain Bitcoin as a long-term strategic asset on their balance sheets. Another recent entrant in the Bitcoin treasury realm is Twenty One Capital, which has secured backing from Tether, SoftBank, and Cantor Fitzgerald.
Asset Entities, a social media marketing firm that Strive declared it would merge with on May 7, saw its shares soar up by 18.2%, closing at $7.74 on May 20, according to Google Finance data. This surge has pushed its market cap to $122.1 million, and ASST has surged by 1,170% since the merger announcement.
Post-merger, Strive is anticipated to possess 94.2% of the combined entity, with Asset Entities holding the remaining 5.8%. The merged companies will retain the names Strive and Asset Entities and continue to trade under the ASST ticker.
