Vivek Ramaswamy's Strive Management plans to become first publicly traded Bitcoin treasury company

Bitcoin (BTC) is up 2% on Wednesday, rising above the $97,000 following a merger between Asset Entities and Strive Asset Management, founded by Ohio governorship candidate Vivek Ramaswamy, to form a public Bitcoin Treasury Company. The deal includes a plan to let Bitcoin holders swap BTC for company stock.

Bitcoin reclaimed $97,000 following Strive Management’s merger with Asset Entities

Publicly traded digital marketing firm Asset Entities has agreed to merge with Strive Asset Management. The companies are combining to become the first publicly listed Bitcoin treasury company, according to a press release on Wednesday.

The joint company will focus mainly on managing a Bitcoin reserve and will function under the Strive brand.

"We are thrilled to be joining forces with Strive Asset Management to help pioneer the future of corporate Bitcoin treasury strategies," said Arshia Sarkhani, President and CEO of Asset Entities.

The company will accumulate Bitcoin through an offering that allows holders to contribute BTC in exchange for its public stock.

The offering is intended to be tax-free, falling under Section 351 of the US tax code, which permits the transfer of assets to a corporation in return for shares of its stock. With this strategy, the newly formed entity plans to raise up to $1 billion in capital, using a mix of equity and debt offerings to acquire Bitcoin.

Strive Enterprises is also expected to hold approximately 94.2% of the joint company ownership, while the legacy shareholders of Asset Entities will retain the remaining 5.8%. The ownership structure will be established before Strive's Bitcoin acquisition strategy is implemented.

The merger remains subject to regulatory approval and customary closing conditions before being fully carried out.

Strive Asset Management is a subsidiary of Strive Enterprises, co-founded by Ohio governorship candidate Vivek Ramaswamy in 2022. Since its launch, Strive has grown to manage $2 billion in assets.

Vivek resigned as Executive Chairman of Strive in 2023 after announcing his candidacy for President of the United States. President Trump later appointed him to co-lead the Department of Government Efficiency (DOGE) alongside Tesla CEO Elon Musk. Following his resignation, Strive appointed Matt Cole as CEO to lead the company.

Bitcoin trades just above $97,000 following the announcement.