Strive Asset Management, Asset Entities Secure $750M PIPE Deal to Fund Bitcoin Acquisitions
Strive Asset Management and Asset Entities, a tech company providing social media marketing, management, and content delivery, have signed a $750 million private investment in public equity (PIPE) deal, with an additional $750 million in potential financing available through warrant exercises.
The PIPE was priced at $1.35 per share of common stock, a 121% premium to Asset Entities’ closing price before its merger announcement with Strive. The warrants also carry an exercise price of $1.35 per share. Strive opted not to raise debt financing for this transaction.
The proceeds will fund Strive’s initial Bitcoin acquisitions upon closing. The financing round included leading institutional investors and Strive’s management team, led by CEO Matt Cole.
“Most Bitcoin treasury companies are valued based on multiples to their Bitcoin holdings, which makes sense because their strategies are tied to leveraged beta to Bitcoin,” said Cole. “By contrast, our alpha-generating Bitcoin accumulation strategies are designed to drive sustained outperformance relative to Bitcoin itself, which requires a new valuation framework.”
Strive’s strategies include acquiring biotech companies trading below their net cash position to unlock discounted cash and purchasing distressed Bitcoin claims, such as Mt. Gox claims, at discounts to Bitcoin NAV. This market opportunity, estimated at over 75,000 BTC, will be pursued through Strive’s strategic partnership with 117 Partners LLC.
Since launching its first ETF in August 2022, Strive has grown to manage approximately $2 billion in assets. The PIPE financing signals a bold next phase in the firm’s evolution—one focused on capitalizing on inefficiencies in crypto-related markets through structured, equity-based strategies.
Cantor Fitzgerald & Co. served as exclusive financial advisor to Strive. In addition, Cantor Fitzgerald & Co. served as exclusive placement agent for the PIPE financing. Davis Polk & Wardwell LLP is acting as legal advisor to Strive. DLA Piper LLP (US) acted as legal advisor to Cantor Fitzgerald & Co. Bevilacqua PLLC is acting as legal advisor to Asset Entities.
