The stock price of marketing company Asset Entities (ASST) rose 52% in after-hours trading on Tuesday, following the approval of a merger with Vivek Ramaswamy's Strive Enterprises to form a Bitcoin treasury company.
Asset Entities stated on Tuesday that "the vast majority" of shareholders voted in favor of the merger, which plans to raise $1.5 billion to purchase Bitcoin. The new company will be renamed Strive, Inc. and will continue to trade under the ASST ticker symbol.
Asset Entities' stock closed up 17.8% at $6.28 on Tuesday, and surged over 52% in after-hours trading to $9.55 following the announcement of the merger.
Matt Cole, CEO of Strive Asset Management, a subsidiary of Strive Enterprise, will lead the merged company, while Arshia Sarkhani, CEO and President of Asset Entities, will serve as Chief Marketing Officer and board member.
It is currently unclear what role Strive co-founder Ramaswamy will play in the newly merged company.
This new company is the latest member of the 186 publicly traded companies reporting large-scale Bitcoin purchases, a number that has grown from less than 100 at the beginning of the year, raising concerns about market saturation.
The trend of publicly traded companies buying cryptocurrency has driven the price of Bitcoin up to $124,450, with companies funding their plans through equity, convertible bonds, perpetual stock, and recent special purpose acquisition mergers.
Strive opted for a reverse merger structure, which is considered safer than the fast-paced SPAC approach, as it relies less on speculative capital raising, dilution, and uncertain transaction timelines.
Strive plans to fund its $1.5 billion Bitcoin purchase through a $750 million public equity private investment (PIPE), with an additional $750 million potentially coming from the exercise of warrants issued in the PIPE.
The $1.5 billion fundraising plan will allow the company to purchase 13,450 Bitcoins at current market prices, placing it among the top ten corporate Bitcoin holders.
The completion of the merger is contingent upon certain conditions, including the approval of Strive's listing application by the Nasdaq Stock Market LLC.
When the merger was announced in May, Strive indicated it was seeking to acquire 75,000 Bitcoins related to claims against the collapsed cryptocurrency exchange Mt. Gox at a discounted price.
Strive stated that this strategy could help enhance its per-share Bitcoin ratio, a metric increasingly used in the Bitcoin treasury space.
However, a successful shareholder vote is needed to pursue the Mt. Gox claims.
Since its launch in 2022 by Anson Frericks and Ramaswamy, Strive has accumulated $2 billion in assets. Ramaswamy is a biotech entrepreneur who ran for president last year and will run for governor of Ohio next year.
Asset Entities is a social media marketing company that had no active involvement in the Bitcoin or cryptocurrency industry prior to announcing the merger with Strive.
Publicly traded companies now hold a total of 1 million Bitcoins, accounting for 5.1% of the current circulating Bitcoin supply.
Michael Saylor's Strategy continues to dominate the Bitcoin accumulation race, holding 638,460 BTC worth $71.2 billion, while MARA Holdings and XXI rank third with 52,477 BTC and 43,514 BTC, respectively.
Related: MYX surges over 230% | Grayscale applies for the first Chainlink ETF
Original article: “Asset Entities Soars Due to Merger with Strive to Establish $1.5 Billion Bitcoin (BTC) Treasury”
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