- Strive targets 75,000 Bitcoin through discounted Mt. Gox claims.
- Strive partners with Castell Advisory to expand Bitcoin holdings.
- Strive plans to purchase BTC at a discount to boost holdings
Strive Asset Management, co-founded by Vivek Ramaswamy, plans to build a 75,000 BTC treasury by acquiring distressed Bitcoin claims from the bankrupt Mt. Gox exchange. The firm intends to buy these claims at a discount, to strengthen its position ahead of a planned merger with Asset Entities. Strive seeks to improve its Bitcoin-per-share ratio and strengthen its position in the Bitcoin asset management sector.
According to a May 20 SEC filing, Strive has partnered with 117 Castell Advisory Group LLC to purchase Bitcoin claims. These claims, awaiting distribution, are tied to Mt. Gox, the defunct crypto exchange. Strive sees this as an opportunity to acquire Bitcoin below market value, which will boost its Bitcoin holdings.
Strive to Merge with Asset Entities
Strive’s plans depend on acquiring shareholder approval before the October 31 deadline for Mt. Gox’s full repayment of creditors. The firm intends to seek approval of the transaction via a proxy statement. Strive aims to leverage its upcoming merger to create a publicly traded Bitcoin asset management firm, which will enable it to build a robust Bitcoin treasury.
The merger with Asset Entities, a Nasdaq-listed firm, will create a new entity focused on Bitcoin investments. Strive’s stock rose by 18.2% after the announcement on May 20 while the company’s market cap surged to $122.1 million. The merger is expected to close by mid-year, and Strive hopes to capitalize on the increased interest in Bitcoin as a hedge against economic uncertainty.
Strive Joins Corporate BTC Treasuries Trend
Strive joins other companies that are accumulating Bitcoin. Other firms, such as Nasdaq-listed Basel Medical Group Ltd. and Singapore-based DigiAsia have announced plans to build Bitcoin treasuries. Basel Medical Group is in negotiations for a $1 billion Bitcoin acquisition, while DigiAsia has pledged up to 50% of its future profits toward Bitcoin purchases.
Strive’s Bitcoin approach mirrors the strategies of major players in the industry, such as Michael Saylor’s strategy. Strategy, the largest corporate Bitcoin holder, recently purchased 7,390 BTC for $764.9 million. Moreover, Metaplanet, a Japanese firm, purchased 1,004 BTC to bring its total holdings to 7,800 BTC.
The rise in corporate Bitcoin purchases is linked to recent economic concerns such as Moody’s recent downgrade of the US credit rating. Strive’s decision comes as more businesses rush to include Bitcoin on their balance sheets. The company’s allocation of resources into Mt.Gox claims allows people to purchase Bitcoin at a lower price.
Related Reading | South Korea Cracks Down on Crypto Sales by Non-Profits and Exchanges