The actions of the ASSET Entities (ASSST) technology company increased 194% on Wednesday after announcing that Stive Asset Management was merging with the company that is quoted in Nasdaq to become a Bitcoin Treasury company (BTC) that is quoted on the stock market.
The agreement, structured as an inverse fusion, will leave the combined company operating under the name of effort and in the list in the Nasdaq. Strive plans to build a considerable Bitcoin reserve using new investment and financing strategies designed to limit the dilution of shareholders.
A key strategy is a planned equity exchange for Bitcoin available for certain accredited investors, they declared in the press release. The exchange will use a fiscal provision known as section 351, which allows the assets appreciated to contribute to a tax -free corporation in exchange for shares, subject to individual circumstances. The agreement will not take a premium to the company’s transaction price, according to the announcement.
The CEO of Stive, Matt Cole, previously a fixed -income portfolio manager of $ 70 billion, said the company aims to overcome Bitcoin using it as a reference point for capital implementation. The strategies will include fusion with overcapitized companies to access discount cash, use leverage and implement structured products for the risk of coverage.
The company plans to expand its capital collection capacity to $ 1 billion after merger through an effective shelf record, offering flexibility to finance Bitcoin’s purchases through capital and debt sales.
Strive has grown rapidly since its launch in 2022, administering approximately $ 2 billion and giving attention to its opposition to ESG mandates. The merger, according to the company, is the next step to boost the adoption of Bitcoin in the corporate treasure bonds, an objective that will also advocate among the companies maintained in their funds.
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