This move will allow Strive to raise up to $1 billion in equity and debt to fund large Bitcoin acquisitions and offer BTC holders a tax-efficient way to exchange holdings for stock. The firm plans to join the growing list of companies pivoting to Bitcoin as a strategic reserve asset thanks to rising institutional demand and macroeconomic uncertainty. Bitcoin-backed lending is also gaining traction, with Xapo Bank CEO Seamus Rocca pointing out the shift in investor mindset. Holders are increasingly borrowing against their BTC instead of selling, due to rising confidence and ETF-related tailwinds. Meanwhile, Hive Digital Technologies is expanding its mining operations in Paraguay, attracted by low-cost hydro power and a pro-investment environment. The firm wants to boost capacity to 300 MW and 25 EH/s by September 2025. Strive Asset Management Goes All In on Bitcoin Strive Asset Management, which was founded by entrepreneur and former US 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 social media marketing company. The merged entity will continue under the Strive brand and leverage its public market access to finance large-scale Bitcoin purchases. Strive’s announcement Strive plans to raise roughly $1 billion through a combination of equity and debt and use the proceeds to build a large Bitcoin reserve. The company stated that it plans 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 said it will offer Bitcoin holders a path to exchange their holdings for public stock in a structure designed to be tax-free. Strive manages around $2 billion in net assets across its investment funds. The company also previously filed to list an ETF focused on convertible bonds from major corporate Bitcoin holders like Strategy. The move was made during a time of growing interest in corporate Bitcoin treasuries, which is a trend that accelerated since the approval of spot Bitcoin ETFs in the US. Companies adopting this strategy, like Strategy, have seen their stock prices soar. Some even rose as much as 350% in 2024 alone. Analysts, including those at Fidelity Digital Assets, argue that Bitcoin can serve as a valuable hedge against macroeconomic instability, including currency debasement and fiscal deficits. Bitcoin treasuries data (Source: Bitcointreasuries.net ) Corporate Bitcoin treasuries now collectively hold approximately $74 billion in BTC, based on data from Bitcointreasuries.net . Ramaswamy launched Strive in 2022 with a mission to ”harness the power of capitalism,” and maintained a close political alignment with President-elect Donald Trump. Although he ran against Trump in the 2023 Republican primaries, he ultimately endorsed him. Bitcoin Hodlers Turn to Loans Instead of Selling Bitcoin treasuries are not the only new hot trend in the crypto space. Bitcoin holders are increasingly turning to crypto-backed loans as confidence in the market grows. This is according to Seamus Rocca, CEO of Gibraltar-based Xapo Bank. At the Token2049 event in Dubai, Rocca explained that with Bitcoin hovering around $98,000 and institutional interest rising, investors are adopting a more long-term view and are more comfortable using their BTC as collateral. This is a major shift from a few years ago when such confidence in borrowing against crypto assets was lacking. Seamus Rocca at Token2049 In March, Xapo Bank introduced a new lending product that allows qualified users to borrow up to $1 million in US dollars against their Bitcoin holdings. Rocca attributed the growing demand for this service to the mood of long-term adoption and stability in the crypto sector. He explained that the current environment, which is boosted by developments like Bitcoin ETFs, is encouraging a sense of security that reduces fears of sharp price crashes and liquidation events. The bank offers loan-to-value ratios of 20%, 30%, and 40%, which allows clients to access liquidity while still minimizing risk. Rocca pointed out that even with a conservative 20% LTV ratio, early adopters with large Bitcoin holdings can borrow large sums without having to sell their assets. In such cases, Bitcoin will need to fall below $40,000 to trigger liquidation. (Source: Unchained ) Rocca said that these loans provide a practical alternative for holders who may need funds for unexpected expenses. Instead of selling Bitcoin and potentially missing out on future gains, borrowers can retain their exposure to BTC and simply pay interest on their loans. This strategy helps investors manage real-life financial needs without compromising their long-term crypto positions. With institutional adoption accelerating and the crypto market continuing to mature, Rocca believes more Bitcoin holders will look to access liquidity through borrowing rather than selling. Hive Digital Taps Paraguay’s Hydro Power for BTC Growth In other Bitcoin-related news, Hive Digital Technologies is placing a strategic bet on Latin America to expand its Bitcoin mining operations. The company is doing this despite the fact that most other crypto firms are contemplating returning to the United States due to geopolitical uncertainties. In a recent interview , Hive’s president and CEO Aydin Kilic specifically pointed to Paraguay as a particularly promising location, due to its geopolitical stability, low-cost hydroelectric power, and a government receptive to foreign investment. The company recently acquired Bitfarms’ 200 megawatt Yguazú facility for $56 million and completed the first phase of a 100 MW data center, which already supports five exahashes per second of ASIC mining. Hive plans to scale operations in Paraguay to 300 MW and increase its hashrate to 25 EH/s by September of 2025. Kilic fully believes in the importance of local engagement, and explained that Hive prioritized hiring, training, and vendor relationships to create a stable support ecosystem that enhances efficiency. Despite a proposed mining ban in Paraguay due to concerns over electricity consumption and potential rate hikes, Hive is in active dialogue with local policymakers to shape more favorable regulatory outcomes. While doubling down on Latin America, Hive is also diversifying globally with operations in Canada, Sweden, and now a new headquarters in San Antonio, Texas. Kilic said this geographical spread helps mitigate risks tied to global trade tensions and regional instability. For example, the company is reducing reliance on Chinese suppliers by securing ASIC and electrical components from multiple regions. To support its ambitious scaling plans, Hive secured ASIC orders, locked in long-term power purchase agreements, and increased engineering capacity across three continents. Kilic described Bitcoin mining profitability as a “physics equation,” where controlling variables like operational expenses, power costs, and machine uptime is crucial when it comes to driving consistent performance. He added that regardless of scale, whether an operator runs a single rig or ten thousand, the key to success lies in maximizing efficiency and maintaining disciplined treasury management.
