Strive Asset Management has just announced its merger with an asset entity and has created the first published Bitcoin Treasury Company.
The newly combined entity operates under the name Strive and oversees $2 billion in assets. It is also a company registered with the Nasdaq.
The agreement allows the merged company to make aggressive purchases of Bitcoin through new financial products, similar to BlackRock and Grayscale.
Strive Enterprises was co-founded in 2022 by Vivek Ramaswamy and Anson Frericks. The new company is headed by Strive CEO Matt Cole, who previously managed a $70 billion bond portfolio.
Under Cole’s leadership, the company aims to offer a set of strategies, including Bitcoin Forequity’s tax-free exchange, which is constructed under section 351 of the IRS Tax Act. This mechanism can draw up to $1 billion in Bitcoin from investors seeking to postpone capital gains tax.
Other strategies include the acquisition of cash flowing companies in discounted groups to enhance their purchasing capabilities to purchase more Bitcoin and financial leverage through risk hedging.
Strive Enterprises owns 94.2% of the newly combined public companies, with shareholders of the Asset Entity receiving 5.8% stakes.
Strive runs a playbook similar to Strategies and Metaplanet in terms of centralizing ownership, using equity and debt financing to accumulate Bitcoin, treating it as a reserve asset for the Ministry of Finance.
It could dilute its fairness, but it requires the risk of maximizing long-term value by actively deploying capital to BTC. However, the tax-free exchange of Bitcoin in section 351 of Strive is different from both Metaplanet and Strategic. If successful, efforts can convince Bitcoin holders to exchange Bitcoin for fairness without paying taxes.