TLDR
Strive aims to acquire 75,000 Bitcoin from Mt. Gox claims at a discount
The company is partnering with 117 Castell Advisory Group LLC for this initiative
Strive plans to complete a reverse merger with Asset Entities by mid-2025
Asset Entities’ stock has surged 1,170% since the merger announcement
Mt. Gox is expected to fully repay creditors by October 31, 2025
Vivek Ramaswamy’s investment firm Strive is making a major move into the cryptocurrency space with plans to build a substantial Bitcoin treasury. The company has revealed its strategy to acquire 75,000 Bitcoin through claims related to the bankrupt exchange Mt. Gox, allowing it to purchase the cryptocurrency at below-market prices.
In a regulatory filing on May 20, Strive announced a partnership with 117 Castell Advisory Group LLC. The collaboration will focus on targeting Bitcoin claims that have received legal rulings but are still awaiting distribution from Mt. Gox.
This approach would enable Strive to buy Bitcoin at a discount compared to current market rates. The company sees this as an opportunity to boost its Bitcoin-per-share ratio ahead of its planned reverse merger with Asset Entities.
Corporate Strategy
The reverse merger with Asset Entities, a social media marketing company, was first announced on May 7. The deal is expected to be completed by mid-2025 and will transform the combined entity into a Bitcoin investment company.
Under the terms of the merger, Strive will own 94.2% of the resulting company. Asset Entities will hold the remaining 5.8%. The new company will retain the name “Strive and Asset Entities” but continue trading under Asset Entities’ ASST ticker.
Strive claims it will face fewer restrictions on purchasing Bitcoin than companies that go public through Special Purpose Acquisition Company (SPAC) mergers. This regulatory advantage could provide more flexibility in building its Bitcoin holdings.
For the Mt. Gox claims to proceed, Strive must secure shareholder approval. The company plans to file detailed terms with the Securities and Exchange Commission and distribute a proxy statement to shareholders seeking their support.
Time is a factor in this strategy. Mt. Gox is scheduled to fully repay its creditors by October 31, giving Strive a limited window to secure the necessary approvals and complete any transactions.
Market Impact
The announcement has already had a dramatic effect on Asset Entities’ share price. Following the news of the Mt. Gox claims strategy, Asset Entities’ stock closed up 18.2% on May 20, reaching $7.74 per share.
This latest increase brings the company’s market capitalization to $122.1 million. Since the initial merger announcement with Strive, Asset Entities’ shares have skyrocketed by 1,170%.
The Japan-based Mt. Gox was once the world’s largest Bitcoin exchange before its collapse in 2014. A security breach resulted in the theft of approximately 750,000 Bitcoin, leading to bankruptcy and years of legal proceedings for affected customers.
Strive’s move reflects a growing trend among corporations looking to hold Bitcoin as a strategic asset. Several other companies have recently announced plans to build Bitcoin treasuries as well.
One such example is Twenty One Capital, a newly launched Bitcoin treasury firm that has received backing from Tether, SoftBank, and Cantor Fitzgerald. Led by Jack Mallers, the company plans to launch with 42,000 Bitcoin once it completes a blank-check merger with Cantor Equity Partners.
Two other Nasdaq-listed firms have also made similar announcements recently. Basel Medical Group Ltd is in exclusive negotiations for a $1 billion Bitcoin acquisition, while Singapore-based DigiAsia has announced an initial plan to purchase $100 million in Bitcoin.
DigiAsia has also committed to allocating up to 50% of its future net profits toward acquiring more Bitcoin. The company is exploring various strategies for generating returns from its holdings, including lending, staking, and developing crypto-linked financial products.
