The cryptocurrency landscape is witnessing significant changes, driven by growing interest in Bitcoin and new approaches to its utilization. This article examines key events related to Strive Asset Management, as well as general trends in Bitcoin handling.
Strive Asset Management Goes All In on Bitcoin
Strive Asset Management, founded by entrepreneur and former U.S. presidential candidate Vivek Ramaswamy, announced plans to become a bitcoin treasury company. On May 7, the firm revealed that it will go public via a reverse merger with Asset Entities, a Nasdaq-listed company. The merged entity will continue under the Strive brand and leverage its access to public markets to finance large-scale Bitcoin purchases.
Strive plans to raise approximately $1 billion through a combination of equity and debt and use the proceeds to build a large Bitcoin reserve. The company aims to take advantage of all available mechanisms to develop a bitcoin 'war chest' and pursue a long-term strategy that could outperform Bitcoin itself. Additionally, Strive stated it will offer Bitcoin holders a path to exchange their holdings for public stock in a tax-efficient structure.
Bitcoin Holders Turn to Loans Instead of Selling
Bitcoin holders are increasingly turning to crypto-backed loans instead of selling their assets, which indicates a growing confidence in the market. According to Seamus Rocca, CEO of Xapo Bank, investors are now using their BTC as collateral to access liquidity.
At the Token2049 event in Dubai, Rocca highlighted that with Bitcoin hovering around $98,000 and institutional interest rising, they are taking a more long-term perspective. In March, Xapo Bank introduced a new lending product allowing users to borrow up to $1 million against their Bitcoin holdings, increasing the demand for borrowing options in current market conditions.
Hive Digital Taps Paraguay’s Hydro Power for BTC Growth
Hive Digital Technologies is strategically betting on Paraguay for its Bitcoin mining operations. CEO Aydin Kilic noted that Paraguay is attractive due to its low-cost hydroelectric power and stable political environment.
The company recently acquired a 200-megawatt hydro facility for $56 million and completed the first phase of a 100 MW data center, which supports five exahashes per second for ASIC mining. Hive plans to scale operations in Paraguay to 300 MW and increase its hashrate to 25 EH/s by September 2025.
In recent months, we have witnessed a significant paradigm shift among both institutional and individual investors in the cryptocurrency sector. The emergence of new opportunities such as Bitcoin-backed loans and interest in corporate treasuries demonstrates that the crypto industry continues to evolve and adapt to changing market conditions.
