In a landmark move for the digital asset and financial sectors, Asset Entities Inc. saw its stock skyrocket over 280%, reaching $2.32 during trading on Wednesday. The dramatic surge follows the announcement of a strategic merger with Strive Asset Management, forming the first publicly traded Bitcoin treasury asset manager.
A New Era: Bitcoin as the Core Treasury Strategy
The newly formed entity will operate under the Strive brand and remain listed on NASDAQ, with a clear mission: to maximize long-term Bitcoin exposure per share. Unlike traditional treasury approaches, the company positions Bitcoin as the benchmark for capital allocation not merely a store of value.
Strive’s strategy sets it apart from competitors like Strategy by actively aiming to outperform Bitcoin using institutional-grade asset management techniques, including derivatives, fixed-income hedging, and equity-driven accumulation tactics.
Innovative Path to Bitcoin Accumulation
One of the most groundbreaking elements of the merger is a first-of-its-kind offering that allows accredited investors to exchange Bitcoin for equity in the public company. This can potentially be executed in a tax-deferred manner under Section 351 of the U.S. tax code, making it an attractive proposition for Bitcoin holders seeking exposure to equity upside without triggering a taxable event.
Additional strategies include:
- Acquiring undervalued public companies with strong balance sheets.
- Utilizing fixed-income products and derivatives to hedge downside risk.
- Issuing debt and equity offerings to scale Bitcoin reserves.
Financial Power Meets Crypto Innovation
Strive Asset Management, known for its activist investing and anti-ESG stance, currently oversees $2 billion in assets. The merger with Asset Entities is expected to expand Strive’s operational and outreach capabilities, positioning the firm as a corporate advocate for Bitcoin adoption.
The combined company also gains immediate access to a shelf registration statement, which it plans to expand to $1 billion, accelerating its plan to acquire and hold Bitcoin at scale.
Experienced Leadership at the Helm
The newly merged entity will be led by CEO Matt Cole, a former fixed-income portfolio manager responsible for over $70 billion in assets. Cole is backed by a seasoned executive team with extensive experience in cryptocurrency, traditional finance, and regulatory law.
Market Response and Future Outlook
Investor enthusiasm around the merger and Bitcoin-centric roadmap triggered the stock’s massive rally, marking one of the most significant single-day gains in the market this year. The unique blend of corporate finance, crypto-native innovation, and activist investing could reshape how public companies interact with digital assets moving forward.
With institutional support and public market access, the new Strive entity is poised to become a pioneering force in Bitcoin treasury management, potentially setting a precedent for other firms seeking to integrate digital assets at a foundational level.
