Asset Entities Inc. ( ASST ) stock is moving higher Thursday on possible continued momentum after the company announced Wednesday that it entered into a merger agreement to form a Bitcoin (CRYPTO: BTC) treasury company.

What To Know: Asset announced that it entered into a merger agreement with Strive Asset Management to form the first publicly traded asset management Bitcoin treasury company.

Strive aims to build a long-term strategy designed to outperform Bitcoin, saying it will use "all available mechanisms" to achieve that goal. The company specifically intends to utilize proprietary strategies to accumulate Bitcoin through methods it considers value-enhancing.

This includes a tax-free offer of company equity in exchange for Bitcoin under Section 351 of the U.S. tax code.

Strive expects the reverse merger structure to provide immediate access to a shelf registration statement for raising capital. After the deal closes, it plans to increase the offering to $1 billion to fund Bitcoin purchases through both stock and debt sales.

The combined company will operate under the Strive brand and remain listed on the NASDAQ.

“We are thrilled to be joining forces with Strive Asset Management to help pioneer the future of corporate Bitcoin treasury strategies,” said Arshia Sarkhani, President and CEO of Asset Entities ( ASST ).

“Our strength in building and activating online communities across Discord and other platforms uniquely positions us to drive education, engagement, and adoption of Bitcoin-centric financial models. This merger empowers us to amplify Strive’s bold mission while delivering transformative value to shareholders.”

Related Link: Coinbase Acquires Deribit In $2.9B Deal To Expand Crypto Derivatives Business

ASST Price Action: At the time of publication, Asset shares are trading 115% higher at $7.28, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.