Asset Entities Inc. (ASST) shares are up this week after shareholders approved the merger with Strive Enterprises, which will create a $1.5 billion bitcoin treasury. Asset Entities, a social media marketing company, is completely pivoting into the world of Bitcoin.
ASST stock saw a whopping 102% rise during regular trading on Tuesday and Wednesday, closing at $8.10, and then went up as much as 14% the next day to $9.25.
The excitement comes as investors are buying into the company’s plan to raise up to $1.5 billion to buy bitcoin, which would be around 13,150 BTC at current prices. That would put the company in the top 10 largest corporate bitcoin holders in the world.
Asset Entities previously focused on social media services across Discord, TikTok and Instagram. But after the merger, the company will be renamed Strive, Inc. and keep the ASST ticker on Nasdaq.
Matt Cole, currently head of Strive Asset Management, will be chairman and CEO. Arshia Sarkhani, who led Asset Entities, will be CMO and on the board.
Cole called the shareholder approval a “defining moment”, adding, “We are uniquely positioned relative to peers to execute our strategy and maximize Bitcoin per share for investors.”
The merger is a reverse-merger structure, which analysts say is safer than the more speculative SPAC deals that were popular last year. The plan is for $750 million in funding through a private placement (PIPE) and another $750 million if warrants are exercised.
Strive will remain debt-free, which Cole says gives the company a long-term advantage. The strategy is not just to hold bitcoin, but to “outperform bitcoin itself” over time.
Strive will also be looking to acquire distressed bitcoin claims. They have looked into buying around 75,000 BTC tied to the collapsed Mt. Gox exchange, which would give them exposure to bitcoin at a discount.
A recent filing mentioned this could increase the company’s “Bitcoin-per-share ratio”, a metric that’s becoming more popular with investors.
The news has gotten both retail and institutional investors buzzing. Data showed message volume about Asset Entities on Stocktwits went up over 370% in 24 hours. Some are even calling for the stock to go to $100 in the short term.
Meanwhile, institutional interest in corporate bitcoin treasuries is on the rise. Public companies now hold over 1 million bitcoin, or about 5% of all coins in circulation. Michael Saylor’s Strategy is the biggest player with over 638,000 BTC worth over $73 billion.
Adding Strive to the list shows how mainstream Bitcoin has become in corporate balance sheets.
Shareholder approval was a big hurdle but the merger is not yet done. The close is still subject to Nasdaq approving the listing for the combined company and other standard regulatory approvals.
