Asset Entities' shares jumped 35% after shareholders approved merger

Asset Entities Inc.(ASST) shares rallied in the extended session late Tuesday after the company said shareholders had approved a merger with Strive Enterprises. The deal is projected to create one of the world’s largest publicly traded Bitcoin treasury businesses and will seek to raise as much as $1.5 billion to acquire Bitcoin assets. 

Shares of Asset Entities closed on Tuesday at 17% at $6.28, but soared to 35% after hours on the back of the shareholder approval news. The strong vote of confidence puts Asset Entities one step closer to its plan of becoming a leading Bitcoin treasury company. However, final approval,  including Nasdaq’s sign-off on the listing application, is still pending.

Asset Entities aims to raise $750 million via a private placement

After the merger, which received strong support from Asset Entities’ shareholders, is complete, the company will rebrand as Strive, Inc., but keep trading under the ASST ticker on Nasdaq. Matt Cole will step in as CEO and Chairman of the Board, while Arshia Sarkhani, who currently serves as President and CEO of Asset Entities, will be Chief Marketing Officer.

Cole commented on the shareholders’ approval, “This shareholder approval is a defining moment in our mission to build a world-class Bitcoin Treasury Company. […] Our focus is on disciplined, long-term strategies designed to outperform Bitcoin itself over time and create perpetual shareholder value.”

Sarkhani also shared that the company is excited about the approval, which he sees as a big step toward building one of the most successful Bitcoin treasury businesses and taking care of existing shareholders.

Strive targets distressed Bitcoin and tax-free swaps

The companies first unveiled the merger in May, calling the reverse merger structure groundbreaking for enabling a tax-free Bitcoin-to-equity exchange under Section 351. At the time, Strive explained that it planned to use multiple strategies to build a large Bitcoin position while protecting shareholder value, using Bitcoin’s performance as the benchmark for deploying capital. It claimed the reverse merger will give it a competitive edge by allowing the company to raise capital through an unprecedented equity-for-bitcoin exchange.

CEO Cole even stated that the deal would create a new way for early Bitcoin investors to put their gains to work. Instead of selling and paying taxes, they can swap Bitcoin for equity in a tax-free transaction after the merger.

At the same time, the company revealed it would be looking at claims involving distressed Bitcoin, such as 75,000 BTC linked to the collapsed Mt. Gox exchange. The Bitcoin holdings of the now-defunct Japanese exchange have been a focal point in the crypto industry since 2014, when they were stolen and the exchange subsequently declared bankruptcy.

According to a recent filing with the SEC, Strive said this would allow it to gain BTC exposure at a discount. As previously reported by Cryptopolitan, the Ohio-based firm is teaming up with 117 Castell Advisory Group LLC to identify and acquire such claims. The filing highlighted the Mt. Gox bankruptcy estate, which holds around 75,000 Bitcoin, noting that these distressed and confirmed claims may come at a lower cost.

It said, “This strategy is intended to allow Strive the opportunity to purchase Bitcoin exposure at a discount to market price, enhancing Bitcoin per share and supporting its goal of outperforming Bitcoin over the long run.”

The firm, which launched its first ETF in 2022, oversees over $2 billion in assets. The company’s co-founder, biotech billionaire and former presidential candidate Vivek Ramaswamy, is now a leading contender for Ohio’s 2026 gubernatorial race.

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