Vivek Ramaswamy’s Strive Asset Management is making waves with a plan to build a massive Bitcoin reserve. The firm aims to acquire 75,000 BTC, valued at roughly $8 billion, from the bankrupt Mt. Gox exchange.
Announced in a May 20 regulatory filing, the strategy hinges on buying distressed claims at a discount. Strive needs shareholder approval to move forward, with filings submitted to the SEC.
How Strive Plans to Build the Bitcoin Reserve
Strive plans to grow its Bitcoin holdings to strengthen its portfolio before merging with Asset Entities by mid-2025. Buying Mt. Gox claims lets the firm purchase Bitcoin below market price, increasing its Bitcoin-per-share ratio. The plan leverages the 2014 Mt. Gox collapse, where 750,000 bitcoins were lost, leaving claims awaiting distribution. The asset management firm plans to file a Form S-4 with the SEC to outline terms and seek shareholder votes.
This strategy aims to outperform Bitcoin’s market performance, capitalizing on economic uncertainties like inflation. The approach is part of a trend where companies like Strategy build Bitcoin treasuries as long-term assets. Strive’s reverse merger with Asset Entities offers flexibility compared to traditional public offerings. By acquiring claims with legal rulings but pending payouts, the asset manager secures a cost-effective Bitcoin stash.
Who’s Behind the Bitcoin Reserve Push?
Strive Asset Management, co-founded by Vivek Ramaswamy, a former presidential candidate, leads this bold crypto venture. Ramaswamy, a vocal Bitcoin advocate, sees it as a hedge against economic risks like global debt. The firm has partnered with 117 Castell Advisory Group LLC, a low-profile Georgia-based company, to source claims.
Strive’s CEO, Matt Cole, drives the strategy, backed by a $30 million Series B round from Cantor Fitzgerald. The merger with Asset Entities, a NASDAQ-listed digital marketing firm, will see the asset management firm control 94.2% of the new entity.
Strive’s plan to snap up 75,000 BTC from Mt. Gox marks an important step toward a Bitcoin treasury. With shareholder approval pending, the firm is likely set to reshape its financial strategy. The partnership with 117 Castell and the Asset Entities merger fuels this crypto push. The asset manager’s next move will likely be to explore more distressed Bitcoin claims to expand its treasury further.
