Hypersphere Invests in Strive Asset Management

Background
The corporate appetite for Bitcoin continues to accelerate with many publicly listed companies positioning themselves as BTC treasury vehicles. MicroStrategy (NASDAQ: MSTR) led the development of this niche strategy, with new entrants like MetaPlanet and Semler Scientific acquiring modest BTC positions before the start of this year. Then, this April, Twenty One Capital announced that it will come to market with a nearly $4 billion dollar treasury, backed by a group of investors including Tether, SoftBank, and Hypersphere — this was actually our largest investment to date. Aggressive BTC accumulation on the balance sheets of public equities looks like a solution to an outdated problem: getting simple Bitcoin exposure. After all, MicroStrategy has been doing this for years, and Bitcoin ETFs are now widely trusted. However, after interviewing over 150 other crypto fund managers, as part of our multi-strategy fund, we noticed that many were focused solely on generating BTC yield for Bitcoin-denominated investors. And on the venture side, we’ve spoken to over 50 companies in the “Bitcoin DeFi” space where projects are promising solutions to generate yield on Bitcoin users' deposits. Hence, the problem is no longer about access; people now want Bitcoin with yield. After all, what’s better than the best performing asset over the past decade? The same asset - but with yield. We see the opportunity for public companies focused on generating BTC yield, and are betting on ones with high growth potential and differentiated business models.

Investment
Strive Asset Management is pioneering a Bitcoin treasury model anchored in strategies that other treasury vehicles have yet to experiment with. Most companies mimic MicroStrategy’s debt-based financial engineering tactics with the core differentiator being they’re smaller (so can more easily earn BTC yield) or are focused on an altcoin like Solana. Strive’s unique approach, detailed in the following section, builds on sponsor Vivek Ramaswamy’s experience at Roivant and consists of three core pillars: private equity-like acquisition of companies trading below cash; distressed Bitcoin claims, including Mt Gox claims; and debt financing paired with structured hedging strategies. We believe Strive has the team, capabilities, and network to become a leading BTC treasury company. Proving our conviction, Hypersphere invested $10 million. Strive trades under the NASDAQ ticker: ASST.Strive is planning a reverse merger with Asset Entities (ASST), a technology firm specializing in social media marketing and content delivery across major platforms. Notably, reverse mergers are often quicker to market than alternatives such as SPAC mergers and IPOs. Upon execution, Strive will see price discovery faster than many of its counterparts. In addition to this sharp market entrance, Strive also implemented a clever fundraise mechanism for BTC holders, facilitating its BTC treasury raise via IRS Section 351. Leveraging this structure enables a tax-free exchange of Bitcoin for equity, attracting BTC-rich contributors without triggering immediate tax liabilities for them. Strive’s most interesting differentiator lies in the three-tiered approach of its BTC treasury strategy.

Private Equity Strategy: Strive will target cash-rich public companies (especially biotechs) trading below net cash, taking an activist investor approach to unlock stranded capital (estimated at $30B across the sector) and convert it into BTC.

• Leveraging Vivek Ramaswamy’s biotech relationships and playbook.
• Acquiring biotech companies post-clinical failure (e.g., no viable pipeline).
• Uses extra cash to purchase BTC for the treasury.

Acquisition of Distressed BTC Claims: Strive plans to purchase legal claims to Bitcoin from bankruptcies, such as Mt. Gox and FTX.

• These claims represent legal rights to future BTC distributions.
• They trade at a steep discount (e.g., ~20%) to spot BTC prices.
• Strive acquires these claims now and receives BTC later when payouts occur.

Financial Engineering and Hedging: Strive plans to use institutional-grade fixed income and options strategies to responsibly leverage the balance sheet.

• Led by CEO Matt Cole (ex-$70B portfolio manager at CalPERS).
• Applies strategic borrowing to acquire BTC when risk/reward is favorable.
• Applies tail risk hedging strategies, such as buying deep out-of-the-money puts when Black-Scholes pricing creates favorable asymmetry.

We are excited to be backing Strive’s leadership team alongside other notable backers. Strive is led by CEO Matt Cole, a former $70B portfolio manager at CalPERS with deep options and fixed-income trading expertise. Vivek Ramaswamy co-founded Strive and the company received early backing from folks like Peter Thiel, JD Vance (U.S. Vice President), Howard Lutnick (U.S. Secretary of Commerce), and Bill Ackman.

Conclusion
As one of the earliest crypto funds to this evolving niche sector, Hypersphere has evaluated a number of BTC treasury investments. We’ve invested in Twenty One Capital, Nakamoto Holdings, SharpLink’s ETH strategy, and now Strive (NASDAQ: ASST). While capital has recently become more available for this strategy, we believe it’s important for public companies engaging in crypto accumulation strategies to plan for the long-term by building out world-class management teams and bringing unique business models to the table. Strive excels at both: with its unique operating business, asset management reputation, savvy fundraising model, and top-tier leadership team, we expect Strive to continue to outperform its industry counterparts and become a category leader in the space.