Asset Entities Stock Rockets Higher On Merger Deal To Form Bitcoin Treasury Company

Asset Entities Inc ASST shares are surging Wednesday after the company announced a merger deal to form a Bitcoin BTC/USD treasury company.

What Happened: Asset Entities entered into a definitive merger agreement with Strive Asset Management, in which the companies will combine under the Strive brand and become a public bitcoin treasury company on the Nasdaq.

Strive Asset Management said it intends to use “all available mechanisms” to build a long-term strategy designed to outperform Bitcoin, using Bitcoin as the hurdle rate for capital deployment.

The company plans to implement proprietary strategies to drive bitcoin accumulation in accretive ways, including an offer of combined company equity in exchange for Bitcoin in a manner that is intended to be tax-free to investors under Section 351 of the U.S. tax code.

The reverse merger structure is expected to give the company immediate access to an effective shelf registration statement to raise primary capital, which the company plans to expand to $1 billion following the closing in order to accumulate bitcoin through both equity and debt offerings.

“We are thrilled to be joining forces with Strive Asset Management to help pioneer the future of corporate Bitcoin treasury strategies,” said Arshia Sarkhani, president and CEO of Asset Entities.

“Our strength in building and activating online communities across Discord and other platforms uniquely positions us to drive education, engagement, and adoption of Bitcoin-centric financial models. This merger empowers us to amplify Strive’s bold mission while delivering transformative value to shareholders.”

See Also: Bitcoin Hovers Around $97,000, But A Correction May Be Around The Corner, Traders Warn

Matt Cole will lead the company as CEO and chairman of the board. Strive Enterprises, Inc., which was co-founded by  former Republican presidential candidate Vivek Ramaswamy, will remain a privately-held company, continuing to focus on expanding its wealth management business.

Strive Enterprises will own approximately 94.2% of the public company and the legacy shareholders of Asset Entities will own the remaining 5.8%, before factoring in the contemplated bitcoin-for-stock exchange and additional financing.

Asset Entities shares were halted for volatility multiple times in Wednesday trading. The company had a market cap of just $8.33 million as of Tuesday’s close, according to data from Benzinga Pro.

173 million shares have already been traded on Wednesday, versus the average of approximately 1.04 million.

ASST Price Action: Asset Entities shares were up 283.6% at $2.34 at the time of publication Wednesday, according to Benzinga Pro.

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