The merger will implement a tax-free Bitcoin-for-equity exchange under Section 351 of the IRS tax code, potentially attracting up to $1 billion from investors.

Strive Asset Management and Asset Entities Inc. have announced a merger to form the first publicly traded Bitcoin treasury asset management company, aiming to maximize Bitcoin exposure for shareholders.

Matt Cole, who has extensive experience managing a $70 billion fixed income portfolio, will serve as CEO and Chairman of the new entity, which will operate under the Strive brand.

The executive team will also include Ben Pham as CFO, Arshia Sarkhani as CMO, and Logan Beirne as CLO, alongside independent board directors who are strong advocates for Bitcoin.

The move into Bitcoin treasury management reflects a broader trend among traditional financial firms integrating digital currencies into their investment strategies.

Analysts suggest that adding Bitcoin to corporate treasuries can serve as a hedge against fiscal deficits and geopolitical risks, further driving institutional adoption.

As of early May 2025, corporate Bitcoin treasuries collectively hold an estimated $74 billion worth of Bitcoin, indicating significant market confidence.

This merger comes at a time of increasing institutional interest in Bitcoin, as firms look to enhance their balance sheets with cryptocurrency.

Looking ahead, analysts project $330 billion in corporate inflows into Bitcoin over the next five years, showcasing sustained institutional interest.

Structured as a reverse merger, the transaction will provide immediate access to a shelf registration statement for capital raising after closing.

Following the merger, Strive Enterprises will retain approximately 94.2% ownership of the public company, while legacy shareholders of Asset Entities will hold 5.8%.

The trend of Bitcoin treasuries is growing, with public companies increasing their holdings from 3.03 million BTC at the start of the year to 3.29 million BTC by the end of Q1 2025.