Strive Asset Management Acquires Claims of Up to 75,000 Bitcoins from the Deceased Exchange Mt. Gox
Strive Asset Management has acquired claims related to up to 75,000 bitcoins from the deceased exchange Mt. Gox, aiming to expand its bitcoin reserves at a discount and transform into a publicly listed company, highlighting the institution’s proactive positioning and innovative strategies in the cryptocurrency sector.
(Background: Did Mt. Gox face a hacker attack again? Numerous creditor accounts experienced “abnormal logins,” and the official website was paralyzed.)
(Supplementary background: Is there an arbitrage opportunity in Mt. Gox’s repayments? Analysts say going long on BTC and shorting BCH is the most effective neutral strategy.)
Strive’s Unconventional Strategy to Acquire Large Claims from Mt. Gox
In the ongoing wave of institutional funds flowing into Bitcoin, Strive Asset Management, founded by prominent American businessman Vivek Ramaswamy, is adopting a non-traditional strategy aimed at significantly increasing its bitcoin holdings.
According to recently disclosed regulatory documents, Strive plans to acquire claims related to up to 75,000 bitcoins from the creditors of Mt. Gox, the former largest bitcoin exchange that has been bankrupt for years. This acquisition not only provides Strive with the opportunity to purchase bitcoins potentially at a discount but also paves the way for its transformation into a publicly listed company focused on bitcoin reserves after its planned merger with Asset Entities. This move reflects the institution’s innovative thinking and competitive landscape in vying for market share.
Strive’s core plan is to accumulate its bitcoin inventory at prices below the market value by acquiring claims related to approximately 75,000 bitcoins in the Mt. Gox bankruptcy case. According to regulatory documents submitted on May 20 of this year, Strive has partnered with 117 Castell Advisory Group LLC, focusing on acquiring those bitcoin claims that have received final legal rulings but are still awaiting distribution. Strive noted that purchasing these claims would allow it to acquire bitcoins at discounted prices and effectively increase its per-share bitcoin holdings before its planned reverse merger with Asset Entities (expected to be completed by mid-year). This operation showcases Strive’s proactive and forward-thinking asset allocation.
Mt. Gox Legacy: The Last Discounted Bitcoins?
Mt. Gox was once the largest bitcoin exchange in terms of trading volume, but it declared bankruptcy in 2014 after experiencing a severe security breach that resulted in the loss of approximately 750,000 bitcoins (worth hundreds of millions of dollars at that time, now valued in the billions). This had a significant impact on the early cryptocurrency market. Now, the distribution of its remaining claims has become the focus of market attention. To execute this acquisition plan, Strive chose to collaborate with 117 Castell Advisory Group, which specializes in identifying and evaluating distressed bitcoin claims. Strive believes that compared to merging through a special purpose acquisition company (SPAC), the reverse merger route it has adopted will face fewer restrictions in acquiring bitcoin claims. The following image illustrates Strive’s comparison of the advantages and disadvantages of the two listing methods:
This plan’s advancement still requires shareholder approval. Strive intends to submit a detailed document to the U.S. Securities and Exchange Commission (SEC) outlining the terms of the proposed transaction, followed by sending a proxy statement to shareholders to seek formal approval. Notably, according to relevant information, Mt. Gox is expected to complete the repayment process to its creditors by October 31 of this year, setting a relatively clear timeline for Strive’s acquisition efforts.
Market Reaction and New Trends in Institutional Adoption of Bitcoin
Increasingly, companies are choosing to incorporate bitcoin as a long-term strategic asset into their balance sheets, with the most notable example being business intelligence firm MicroStrategy, which has accumulated a substantial bitcoin reserve. Compared to purchasing bitcoin directly from exchanges or miners, Strive’s strategy of acquiring distressed assets, if successful in addressing administrative costs and uncertainties, indeed provides a potential cost advantage.
As the deadline for Mt. Gox’s repayments approaches and institutional interest in bitcoin continues to rise, this deployment method of “discounted bitcoins” is bound to become a focal point in the financial sector and could offer new insights for other institutions seeking to enter the bitcoin space.
