Vivek Ramaswamy’s Strive Looks To Capitalize on MicroStrategy’s Bitcoin Strategy With New ETF

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CCN2025/01/05 16:00

By:CCN

Key Takeaways

Strive is launching an ETF that invests in bonds issued by companies using the proceeds to acquire Bitcoin.
The ETF will primarily target companies like MicroStrategy, which have issued bonds specifically for Bitcoin purchases.
Other companies considered for the ETF include Metaplanet, Riot Platforms, and MARA Holdings.

Strive Asset Management, the firm co-founded by Vivek Ramaswamy, has filed with the Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) aimed at bonds issued by companies investing in Bitcoin.

The fund, known as the Strive Bitcoin Bond ETF, will be an actively managed product that will focus on companies that use the proceeds from bond issuances to fund their Bitcoin purchases.

The ETF will primarily target companies such as MicroStrategy . Strive has structured the fund to invest in these bonds directly, as well as through derivatives like swaps and options.

Vivek Ramaswamy’s Bold Bitcoin Bet

Vivek Ramaswamy , a well-known figure in the political and financial realms, is no stranger to high-stakes ventures.

His company’s new ETF aims to capitalize on the growing trend of corporate Bitcoin adoption.

The ETF will be managed by Strive’s CEO and CIO, Matthew Cole, alongside portfolio managers Jeffrey Sherman and Randol Curtis, who also oversees Strive’s wealth management division.

In its filing with the SEC, Strive identified MicroStrategy as a key player in the ETF’s strategy.

MicroStrategy , led by Michael Saylor, has invested over $27 billion in Bitcoin since 2020.

This gambit has significantly boosted MicroStrategy’s stock price, which has risen nearly 359% over the past year, further underscoring the potential of corporate Bitcoin investments.

Strive has stated that at least 80% of the ETF’s exposure will come from “Bitcoin bonds” issued by companies like MicroStrategy, calling it the world’s first and largest Bitcoin Treasury company.

The ETF will hold options contracts based on MicroStrategy’s convertible securities, providing it with the flexibility to buy or sell at predetermined strike prices.

Expanding the Bitcoin Bond Strategy

While MicroStrategy will be the primary focus, Strive has made it clear that the ETF will also include other companies that are increasingly turning to bond issuance to finance their Bitcoin investments.

One such company is Metaplanet , which is looking to raise 4.5 billion yen (around $29.25 million) through a bond issuance aimed at expanding its Bitcoin holdings.

Riot Platforms is another key player, having recently issued a $594 million convertible bond with a 0.75% coupon.

This bond offering was used to acquire an additional 667 Bitcoin at an average price of $101,135.

MARA Holdings is also on Strive’s radar , with plans to offer $700 million in convertible senior notes in a private placement to institutional buyers.

A Strategic Play on Corporate Bitcoin Investments

Strive’s Bitcoin-focused ETF is part of a larger trend of financial products and investment vehicles increasingly tied to Bitcoin and crypto markets.

By investing in companies that are doubling down on Bitcoin through bond offerings, Strive is betting on the long-term value of Bitcoin as a treasury asset and a potential hedge against economic instability.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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