Strive Part II... Why It is Interesting (Patreon)
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Rem all assets have risk, but the Financial Jiu Jitsu behind this one is what tickles my fancy. It will take them some time to ramp I reckon... in the meantime we shall see where this goes.
Here's a simple breakdown Strive Asset Management's Bitcoin treasury strategy:
Strive’s Big Move: Strive Asset Management (@StriveFunds) launched the first publicly traded company using Bitcoin as a treasury asset, meaning they hold Bitcoin as a key part of their financial reserves to grow value.
Unique Strategy: Instead of just holding Bitcoin, Strive aims to maximize Bitcoin per share, outperform Bitcoin’s price growth, and use Bitcoin as the benchmark for all their financial decisions.
Tax-Free Exchange: Through a "351 exchange," investors can trade their Bitcoin for Strive’s stock without paying taxes on the gains, making it easier for Bitcoin holders to invest in the company.
Smart Acquisitions: Strive plans to buy undervalued companies, take their cash, and convert it into Bitcoin, which increases the amount of Bitcoin they hold per share without issuing new shares.
Leverage with Care: They’ll use financial tools like debt to increase their Bitcoin holdings while protecting against losses, ensuring they grow their Bitcoin reserves responsibly.
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