Strive’s Bold Move: Acquiring Bitcoin at a Discount from Mt. Gox
Strive’s Bitcoin Strategy: Buying Claims at a Discount
Vivek Ramaswamy’s company, Strive, is making a big move into the world of Bitcoin. They’re planning to buy up distressed Bitcoin claims at a discount, starting with a hefty 75,000 Bitcoin tied to the bankrupt crypto exchange Mt. Gox.
Strive announced this plan in a May 20 regulatory filing, revealing a partnership with 117 Castell Advisory Group LLC to target claims that have legal rulings but haven’t been distributed yet.
Boosting Bitcoin Holdings
This strategy allows Strive to acquire Bitcoin at a lower price and increase its Bitcoin per share ratio. This move comes ahead of the company’s planned reverse merger with Asset Entities, expected to finalize sometime this year. Strive hasn’t disclosed any existing Bitcoin holdings but claims they’ll face fewer restrictions on buying Bitcoin compared to companies going public through Special Purpose Acquisition Company (SPAC) mergers.
However, Strive needs shareholder approval to pursue these Mt. Gox claims. They plan to file details with the Securities and Exchange Commission and send a proxy statement to shareholders to get their green light.
Time is of the Essence
Strive has to act quickly because Mt. Gox is expected to fully repay its creditors by October 31st.
Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 due to a security breach that resulted in the theft of approximately 750,000 Bitcoin. This move by Strive reflects a growing trend in the industry, with more firms looking to hold Bitcoin as a long-term strategic asset.
Another notable example is Twenty One Capital, a newly launched Bitcoin treasury firm backed by big names like Tether, SoftBank, and Cantor Fitzgerald. They plan to launch with 42,000 Bitcoin after completing a SPAC merger with Cantor Equity Partners.
Impact on Asset Entities
Asset Entities (ASST), a social media marketing company that Strive announced it would merge with on May 7th to create a Bitcoin investment company, has seen its shares surge. On May 20th, ASST shares closed up 18.2% to $7.74, according to Google Finance data. This latest bump brings its market cap to $122.1 million, and ASST is now up 1,170% since Strive announced the merger plan.
Once the reverse merger is complete, Strive is expected to own 94.2% of the combined entity, while Asset Entities will hold the remaining 5.8%. The merged companies will continue to trade under the ASST ticker.
