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.

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Asset Entities contributes its digital marketing and content delivery services to the merger, while Strive Asset Management brings its status as a Strive Enterprises subsidiary and an impressive $2 billion in assets under management. The merged entity will continue to operate under the Strive name and remain listed on NASDAQ.

In a released statement, Strive detailed its plans to leverage all available mechanisms to accumulate a Bitcoin reserve, aiming for minimal dilution to common shareholders. The long-term investment strategy is designed to outperform Bitcoin, using the cryptocurrency itself as the benchmark for capital deployment.

Strive’s distinctive “reverse merger structure” reportedly offers multiple competitive edges over other Bitcoin treasury companies, especially in terms of capital raised via a “first-of-its-kind” equity offering of the combined company in exchange for BTC. Importantly, this will be a “tax-free” transaction for investors, thanks to Section 351 of the U.S. tax code, which facilitates the taxless exchange of “appreciated assets” for stock.

Strive’s CEO, Matt Cole, affirmed the benefits of this strategy at the Strategy World conference on Wednesday. He explained that this tax-free approach would likely attract significant interest from Bitcoin holders with substantial gains, who traditionally face hefty IRS taxes when they sell their coins.

Strive joins a growing list of companies utilizing a Bitcoin treasury management approach, providing investors with leveraged exposure to BTC via a publicly traded equity, eliminating the need for direct token ownership. The merger will also pave the way for immediate access to a shelf registration statement to raise capital, with plans to generate $1 billion through equity and debt offerings.

Cole concluded by emphasizing the potential for increased leverage beyond current levels seen in Bitcoin treasury companies, highlighting the importance of providing explicit downside protection.

Disclaimer: The Block is an independent media outlet offering news, research, and data. As of November 2023, Foresight Ventures is the majority investor of The Block. Foresight Ventures also invests in other crypto-related companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block maintains its independence to deliver objective, timely, and impactful information about the crypto industry. This article is for informational purposes only and does not constitute financial, legal, tax, or investment advice.

The post Unlocking Tax-Free Bitcoin-to-Stock Exchange Opportunities: Strive Asset Management Merges with Asset Entities appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The company has entered into an agreement to merge with Strive Asset Management, a subsidiary of Vivek Ramaswamy’s financial services firm, Strive Enterprises. Subsequent to the merger, ASST aims to transform into a Bitcoin holding firm, offering its shareholders a chance to tap into the lucrative world of cryptocurrencies.

Asset Entities is among a number of companies seeking to mirror the successful approach taken by Michael Saylor’s Strategy MSTR. Notably, shares of e-commerce company Upexi surged five-fold since the announcement of its turn toward Bitcoin last month. As it stands, Strategy is the largest corporate holder of Bitcoin and its shares have surpassed the cryptocurrency’s performance in 2025.

Year-to-date, ASST has risen by an impressive 24.4% as of the last close.

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