We advised Strive Enterprises on the transaction involving common stock, pre-funded warrants and traditional warrants

Davis Polk advised Strive Enterprises, Inc. in connection with a private placement of 346,043,350 shares of common stock of Asset Entities Inc. at a price of $1.35 per share and, in lieu of common stock, pre-funded warrants to purchase up to 209,771,462 shares of common stock at a price of $1.35 per pre-funded warrant, and 555,814,812 warrants to purchase shares of common stock. The financing was entered into in connection with the proposed combination of Strive Asset Management, Strive Enterprises’ asset management subsidiary, with Asset Entities. The combined company expects to receive aggregate gross proceeds from the private placement of approximately $750.3 million, with an additional $750 million in potential proceeds upon exercise of the traditional warrants, which could increase total proceeds to up to $1.5 billion.

The combined company intends to use the proceeds from the offering to support its first wave of bitcoin acquisitions, with the goal of establishing itself as the first bitcoin treasury company focused on long-term bitcoin outperformance through the implementation of alpha-generating strategies.

Co-founded in 2022 by Vivek Ramaswamy, Strive Enterprises is a financial services firm with a mission to maximize value for clients through unapologetic capitalism. Strive Asset Management has quickly grown to manage approximately $2 billion in assets.

Asset Entities is a technology company providing social media marketing, management and content delivery across Discord, TikTok, Instagram, X (formerly Twitter), YouTube and other platforms. Asset Entities is the first publicly traded company based on the Discord platform, hosting some of Discord’s largest educational and entertainment communities. Its shares are listed on Nasdaq under the symbol “ASST.”

The Davis Polk capital markets team included partner Derek Dostal, counsel Michael Stromquist and associates Frank (Xinggang) Zhang and Nicole (Nikki) Williams. The M&A team included partners Brian Wolfe and Evan Rosen and associates Neil Bhatt and Benjamin Malone. All members of the Davis Polk team are based in the New York office.

Copy link to share post