Strive Asset Management, co-founded by Vivek Ramaswamy, announced plans to merge with Asset Entities (NASDAQ: ASST) to create the first publicly traded Bitcoin asset management company. This strategic move leverages Asset Entities' digital marketing expertise and community engagement platforms like Discord, while enabling tax-efficient Bitcoin-to-equity conversions under IRS Section 351. Following the news, ASST stock surged 455% to $3.39.
Key Highlights of the Merger
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- Tax-Advantaged Structure: Investors can exchange Bitcoin for company shares without triggering taxable events.
- $1B Fundraising Goal: To build a substantial Bitcoin reserve through equity and debt offerings.
- Combined Strengths: Strive’s asset management prowess + Asset Entities’ digital community platforms.
Who Is Strive Asset Management?
Founded in 2022 by Vivek Ramaswamy and Anson Frericks, Strive Asset Management manages $1.97B across 13 low-fee funds. The firm previously filed for a Bitcoin Bond ETF tracking MicroStrategy-like convertible bonds, though the product remains pending SEC approval.
Post-merger, Strive Enterprises will retain 94.2% ownership, with Asset Entities shareholders holding 5.8%. Future funding rounds may dilute these stakes proportionally.
Asset Entities’ Role in the Merger
Asset Entities (ASST) brings:
- Digital Marketing Infrastructure: Expertise in Discord and online community management.
- Capital Raising Plan: $1B in equity/debt to scale Bitcoin reserves.
- Tax Efficiency: IRS Section 351 allows BTC-to-stock swaps tax-free, appealing to long-term Bitcoin holders facing capital gains liabilities.
"Bitcoin is going to the moon. OG holders can now swap their BTC for shares without IRS penalties."
— Matt Cole, CEO of Strive
Market Reaction and Risks
- ASST Stock Surge: Shares jumped 455% post-announcement.
- Regulatory Risks: SEC scrutiny over Bitcoin-linked financial products persists.
- Volatility Warning: Cryptocurrency investments carry high risk; capital loss is possible.
FAQ
Q: How does IRS Section 351 benefit Bitcoin investors?
A: It permits tax-free exchanges of Bitcoin for company stock, deferring capital gains taxes.
Q: What’s the $1B fundraising for?
A: To acquire Bitcoin reserves and fund operations as a Bitcoin treasury company.
Q: Will Strive’s Bitcoin Bond ETF launch?
A: Still pending SEC approval; the merger may accelerate regulatory pathways.
👉 Explore tax-efficient crypto investment strategies
Disclaimer: Cryptocurrency investments are speculative and volatile. Conduct independent research before investing.
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