Strive Aims to Acquire Discounted Bitcoin Claims from Mt. Gox

According to Cointelegraph, Strive, led by Vivek Ramaswamy, is set to expand its Bitcoin holdings by acquiring distressed Bitcoin claims at a reduced price, beginning with claims linked to 75,000 Bitcoin from the bankrupt crypto exchange Mt. Gox. In a regulatory filing dated May 20, Strive announced its collaboration with 117 Castell Advisory Group LLC to target Bitcoin claims that have received definitive legal rulings but are still pending distribution. This strategic move is intended to allow Strive to purchase Bitcoin at a discount, thereby increasing its Bitcoin per share ratio ahead of a planned reverse merger with Asset Entities, anticipated to conclude mid-year. Strive has not disclosed its current Bitcoin holdings but asserts that it will encounter fewer restrictions on Bitcoin purchases compared to companies going public through Special Purpose Acquisition Company (SPAC) mergers. The company emphasized the need for shareholder approval to pursue the Mt. Gox claims and plans to file with the Securities and Exchange Commission to detail the transaction's terms. A proxy statement will be sent to shareholders to secure their approval. This approval is crucial as Mt. Gox is expected to complete creditor repayments by October 31. Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 following a security breach that led to the theft of approximately 750,000 Bitcoin. Strive's shift towards becoming a Bitcoin treasury company mirrors a broader industry trend where more firms are incorporating Bitcoin into their balance sheets as a long-term strategic asset. In related developments, Asset Entities (ASST), a social media marketing company that Strive plans to merge with to form a Bitcoin investment company, experienced an 18.2% increase in its share price, closing at $7.74 on May 20, according to Google Finance data. This surge elevates its market capitalization to $122.1 million, marking a 1,170% increase since Strive announced the merger plan. Upon completion of the reverse merger, Strive is expected to own 94.2% of the combined entity, with Asset Entities retaining the remaining 5.8%. The merged companies will continue under the name Strive and Asset Entities, trading with the ASST ticker. This move aligns with the industry trend of firms like Twenty One Capital, which, backed by Tether, SoftBank, and Cantor Fitzgerald, plans to launch with 42,000 Bitcoin following a merger with Cantor Equity Partners.