Asset Entities, Strive Asset Management announces $750M PIPE

Asset Entities (ASST) and Strive Asset Management announced the signing of a $750M private investment in public equity, with an additional $750M in potential financing upon the exercise of warrants, which could increase total potential proceeds to $1.5B. Upon closing of the transactions, the proceeds are expected to support the company’s first wave of Bitcoin acquisitions, with the goal of establishing Strive Asset Management as the first Bitcoin treasury company focused on long-term Bitcoin outperformance through the implementation of alpha-generating strategies, in addition to the company’s plans to implement known beta strategies used by incumbent Bitcoin treasury corporations. A select group of leading institutional investors and Strive’s management team, including CEO Matt Cole, participated in the financing, which is expected to close concurrently with the transaction under the merger agreement between Strive Asset Management and Asset Entities. Strive Asset Management’s first wave of alpha-generating Bitcoin accumulation strategies include: Unlocking discounted cash through acquisitions of biotech companies trading below their net cash position, which Strive views as a multi-billion dollar opportunity, and one where Strive believes it has a distinctive competitive advantage due to its founding and management team. Acquiring distressed Bitcoin claims-such as Mt. Gox claims-at discounts to Bitcoin NAV, a market opportunity estimated to be over 75,000 BTC, through Strive’s recently announced strategic partnership with 117 Partners LLC. Positioning itself to become a market leader in purchasing bottom tranches of structured Bitcoin credit vehicles, at discounted prices. The PIPE was priced at $1.35 per share of common stock, representing a 121% premium to the closing price of Asset Entities immediately before its merger announcement with Strive Asset Management. The exercise price for warrants in this PIPE transaction is $1.35 per share. Strive elected not to raise any debt financing in this transaction, to preserve maximal leverage capacity in the future to optimize returns for common equity. Strive will further discuss its alpha strategies during Matt Cole’s 11:54 AM PT presentation at Bitcoin for Corporations in Las Vegas, Nevada. The presentation is expected to be streamed by the conference later in the day. The financing transaction is subject to customary closing conditions, including approvals from the shareholders of both Strive and Asset Entities.