Strive aims to amass a 75,000 BTC treasury by buying discounted Bitcoin claims from the bankrupt Mt. Gox exchange.
Strive Asset Management, the company co-founded by Vivek Ramaswamy, has disclosed its intention to construct a 75,000 Bitcoin Treasury by purchasing distressed BTC claims at a discounted price from the defunct crypto exchange Mt. Gox. In the face of increasing debt and economic uncertainties in the United States, many organizations are incorporating Bitcoin (BTC) into their balance sheets.
Strive Announces Plans to Purchase Bitcoins at a Reduced Price
Strive disclosed its collaboration with 117 Castell Advisory Group LLC in its May 20 SEC filing to acquire Bitcoin (BTC) claims that have been legally acquired but are awaiting distribution from Mt. Gox.
The company also stated that acquiring these claims would enable it to purchase BTC at a discounted rate to establish its own Bitcoin Treasury. This would assist in increasing its Bitcoin-per-share ratio in anticipation of the closure of its reverse merger with Asset Entities by mid-year.
Strive is still obtaining shareholder approval and intends to submit a comprehensive filing to the US Securities and Exchange Commission (SEC) to pursue the Mt. Gox claims. This filing will disclose the complete terms of the proposed transactions. The company will subsequently request shareholder approval through a proxy statement.
Strive must obtain shareholder approval for claims before October 31, as Mt. Gox intends to reimburse its creditors fully. On May 20, Asset Entities (ASST), a social media marketing firm preparing to merge with Strive to establish a Bitcoin investment company, experienced an 18.2% increase in its stock price. The company’s market capitalization has increased to $122.1 million due to a remarkable 1,170% increase in its stock price since the announcement of the merger.
The Construction of Bitcoin Treasury by Corporations
In the past few weeks, numerous corporations have disclosed their intentions to establish the Bitcoin Treasury in response to global economic uncertainties. The demand for Bitcoin (BTC) has increased further due to Moody’s downgrading the US credit rating, which raised concerns regarding the increasing debt.
In the past week, two Nasdaq-listed companies have made comparable announcements regarding substantial Bitcoin acquisitions. Basel Medical Group Ltd (Nasdaq: BMGL) has disclosed that it is in exclusive negotiations to acquire Bitcoin for $1 billion, indicating a substantial shift in its financial strategy.
Conversely, DigiAsia, a Singaporean company, disclosed an initial strategy to acquire $100 million in Bitcoin. DigiAsia has committed to investing up to 50% of its future net profits in acquiring Bitcoin. The company also disclosed its intention to investigate various strategies for generating returns from its Bitcoin holdings, such as developing crypto-linked financial products, staking, and lending.