Strive Embraces Bitcoin: A $1 Billion Treasury Ambitions
Strive Asset Management, the investment firm founded by entrepreneur and former presidential candidate Vivek Ramaswamy, is taking a bold leap into the world of Bitcoin. The company has unveiled plans to transition into a Bitcoin treasury company, aiming to amass a staggering $1 billion worth of BTC through a reverse merger and subsequent public market financing.
This strategic shift, announced on May 7, will see Strive merging with Asset Entities, a social media marketing company listed on the Nasdaq. The combined entity will operate under the Strive brand, utilizing its access to the public equity markets to fuel Bitcoin purchases.
Following the merger completion, Strive intends to issue approximately $1 billion in equity and debt. These funds will be directly allocated to acquiring Bitcoin, with the company emphasizing its commitment to building a “Bitcoin war chest” and implementing a “long-term investment approach designed to outperform Bitcoin,” as per its announcement.
A Bitcoin Treasury Trend Gains Momentum
Strive’s move reflects a growing trend of companies adopting Bitcoin as a treasury asset. Since the approval of Bitcoin exchange-traded funds (ETFs) on Wall Street, corporate Bitcoin treasuries have become increasingly popular. Notable examples like MicroStrategy have seen their share prices surge by 350% in 2024, demonstrating the potential benefits of such strategies.
Analysts view the inclusion of Bitcoin in corporate treasuries as a potential hedge against escalating fiscal deficits, currency debasement, and geopolitical risks. Fidelity Digital Assets, a leading asset manager, outlined this perspective in a 2024 report. As of May 7, corporate Bitcoin treasuries collectively hold an estimated $74 billion worth of BTC, showcasing the expanding appeal of this asset class.
Ramaswamy’s Bitcoin Bet
Ramaswamy, known for his outspoken views and his 2023 Republican presidential campaign, established Strive in 2022.
The company’s mission, as stated on its website, is to “harness the power of capitalism” for investors. With his substantial net worth derived from the biotechnology startup Roivant Sciences, Ramaswamy’s foray into Bitcoin is a significant move that could further propel the adoption of this digital asset in the traditional financial sphere.
Strive’s bold Bitcoin strategy presents a fascinating case study of how companies are adapting to the evolving landscape of digital assets. The success of their $1 billion Bitcoin treasury plan will be closely watched by the crypto community and the broader financial world.
