Strive Plans to Build Its 75,000 Bitcoin Treasury With Mt. Gox Claims
Highlights
- Strive aims aims to boost its Bitcoin-per-share ratio ahead of its anticipated reverse merger with Asset Entities.
- Asset Entities (ASST), the social media marketing firm merging with Strive, has seen its stock price skyrocket by 1,170%.
- Corporations are increasingly adding Bitcoin to their balance sheets amid global economic uncertainties and rising U.S. debt
Strive Asset Management, the company co-founded by Vivek Ramaswamy, announced its plans to build its 75,000 Bitcoin Treasury by purchasing distressed BTC claims at a discount from bankrupt crypto exchange Mt. Gox. Amid US economic uncertainties and rising debt, more and more companies are willing to add BTC to their balance sheets.
Strive Shares Plans to Buy Bitcoins At A Discount
In its May 20 SEC filing, Strive revealed its partnership with 117 Castell Advisory Group LLC to acquire claims to Bitcoin (BTC), which have already been legally received but are awaiting distribution from Mt. Gox.
The firm further stated that acquiring these claims will allow it to purchase BTC at a discount to build its own Bitcoin Treasury. This would help to boost its Bitcoin-per-share ratio ahead of its anticipated reverse merger with Asset Entities, expected to close by mid-year.
In order to pursue the Mt. Gox claims, Strive is still seeking shareholder approval and plans to lodge a full filing with the U.S. Securities and Exchange Commission (SEC), sharing the full terms of the proposed transactions. Later, the firm will seek shareholder approval via a proxy statement.
With Mt. Gox planning to fully repay its creditors by October 31, Strive needs to get the shareholder approval for claims before that. Asset Entities (ASST), a social media marketing firm set to merge with Strive to form a Bitcoin investment company, saw its shares rise by 18.2% on May 20. With a staggering 1,170% increase in its stock price since Strive’s merger announcement, the company’s market cap has surged to $122.1 million.
Corporations Building Their Bitcoin Treasury
Over the last few weeks, a large number of corporations have announced plans to build the Bitcoin Treasury amid global economic uncertainties. The demand for BTC has shot up further as Moody’s downgraded the US credit rating, citing concerns for the rising debt.
Over the past week, two Nasdaq-listed firms made similar announcements for massive Bitcoin acquisitions. Basel Medical Group Ltd (Nasdaq: BMGL) has announced exclusive negotiations for a $1 billion Bitcoin acquisition, signaling a significant pivot in its financial strategy.
On the other hand, Singapore-based DigiAsia announced an initial plan of $100 million Bitcoin purchase. DigiAsia has pledged to allocate up to 50% of its future net profits toward acquiring Bitcoin. The company also outlined plans to explore diverse strategies for generating returns from its Bitcoin holdings, including lending, staking, and developing crypto-linked financial products.
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