“The Combined Company Plans to Stockpile Bitcoin and Offer Tax-FREE Equity Swaps to Access Holders.”, – WRITE: www.coindesk.com
The Deal, Structured As A Reverse Merger, Will Leave the Combined Company Operation Under the Strive Name and Listed on the Nasdaq. Strive Plans to Build A Sizable Bitcoin Reserve Using Novel Investment and Finance Strategies Designed to Limit Shareholder Dilution.
One Key Strategy Is A Planned Equity-For-Forcoin Swap Available to Certain AcCredited Investors, The Companies Stated in the Press Release. The Exchange Will Use A Tax Provision Known As Specta 351, Which Allows Apprecated Assets to Be Contributed To A Corporation Tax-Free in Return For Stock, Subject to Indeal. The Deal Will Not Carry a Premium to the Company’s Transaction Price, Account to the Announcement.
Strive CEO Matt Cole, Formerly A $ 70 Billion Fixed Income Portfolio Manager, Said The Company Aims to Outperform Bitcoin by Using IT As A Benchmark for Capital DepLement. Strategies Will Include Mringing with Overcapitalized Firms to Access Discounted Cash, Employing Leverage, and Deploying Structure Products to Hedge Risk.
The Company Plans to Expand It Capital Raising Capacity to $ 1 Billion Post-Merger Through An Effective Shelf Registration, Offering Flexibility to Fund Bitcoin Purchases Via Equity and Debt.
Strive Has Grown Quickly Since Launcing in 2022, Managing Roughly $ 2 Billion and Gaining Attcture for It Opposition To Esg Mandates. The Merger, accounting to the company, is a Next step in pushing for bitcoin adoption account of Corporate Treasuries, A Goal It Will Also Advocate for Among Companies Held in ITS FUNDS.
Disclaimer: Parts of this Article Were Generated with the Assistance from AI Tools and Review by Our Editory Team to Enseure Accucy and Adherice Tour Standards. For more information, See Coindesk’s Full Ai Policy.
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