Strive Asset Management has announced an initiative to build a 75,000 Bitcoin (BTC) treasury by buying claims from the bankrupt crypto exchange Mt. Gox.
These claims, valued at about $8 billion at current market prices, have been legally approved but have yet to be distributed.
Mt. Gox’s Bankruptcy Claims
In a May 20 filing with the U.S. Securities and Exchange Commission (SEC), Strive announced it has entered a partnership with 117 Castell Advisory Group LLC. The deal is focused on identifying and evaluating distressed BTC claims, including those from the Mt. Gox estate.
The company said its strategy aims to buy BTC exposure at lower prices than the market, which could increase the asset’s price per share. This would also support its long-term goal of performing better than the flagship cryptocurrency.
To move forward with the transaction, Strive intends to submit a full filing with the SEC outlining the terms of the proposal. Asset Entities (ASST), a social media marketing firm that will soon merge with the company, will then distribute a proxy statement and prospectus to stakeholders for approval.
Mt. Gox, once the largest Bitcoin exchange, handled about 70% of global BTC transactions before its collapse in 2014 due to several security breaches that led to the theft of approximately 750,000 BTC. This resulted in the platform filing for bankruptcy, which ended in a lengthy rehabilitation process to compensate creditors.
Since the Japan-based exchange is scheduled to complete repayments by October 31, Strive must secure shareholder approval before then.
Merger Details
Earlier this month, Strive announced its upcoming merger with Asset Entities. If approved, the deal would create the first publicly-traded asset management firm focused on BTC. The new entity will operate under the ASST brand with plans to adopt a Bitcoin treasury strategy.
Strive also said it will use tax-efficient methods to increase Bitcoin exposure per share. This includes giving investors the option to trade it for stock under Section 351 of the U.S. tax code to reduce tax costs. The firm plans to raise up to $1 billion through equity and debt offerings, which will be used to buy the digital asset in ways that reduce shareholder dilution.
The investment company aims to use reverse mergers, discounted purchases, and hedging strategies to support shareholder value. Matt Cole, CEO of Strive, will lead the combined enterprise.
The latest development comes as other firms continue expanding their Bitcoin reserves. Strategy recently disclosed a purchase of 7,390 BTC for $764.9 million, bringing its total to 576,230 BTC. Japan-based Metaplanet also added 1,004 BTC, increasing its holdings to 7,800 BTC.
