Shares in Tech Company Asset Entities (ASST) rose 194% on Wednesday after Strive Asset Management announced that it would merge with a NASDAQ-registered company to become a publicly traded Bitcoin (BTC) financing company.
The agreement, which is constructed as an inverse merger, will operate the integrated company under Strive Name and remain listed on Nasdaq. They plan to build a substantial Bitcoin reserve using new investment and funding strategies designed to limit shareholder dilution.
One key strategy is the planned Bitcoin swaps available to certain certified investors, the company said in a press release. This exchange uses tax provisions known as Section 351. This allows the company to contribute to the company by withdrawing shares in exchange for stocks associated with individual circumstances. According to the announcement, the transaction does not involve a premium on the company’s transaction price.
Matt Cole, CEO, formerly a $70 billion bond portfolio manager, said he aims to surpass Bitcoin as a benchmark for Capital Deployment. Strategies include merging with overcapitalized companies to access discounted cash, employ leverage, deploying structured products and hedging risks.
The company plans to expand its capital to $1 billion after the merger through effective shelf registration, providing the flexibility to fund Bitcoin purchases through equity and debt sales.
The effort has grown rapidly since its launch in 2022, managing around $2 billion and attracting attention to opposing the ESG order. According to the company, the merger is the next step in promoting Bitcoin adoption across the company’s Treasury Department, and it is a goal that it will also advocate among companies held in funds.
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