Summary The upcoming September 9th shareholder vote for Asset Entities with Strive is pivotal; with 40% of votes secured, about 11% more is needed for approval. If approved, Asset Entities will pivot to a Bitcoin treasury, leveraging $750 million in PIPE funds to accumulate crypto and drive a major revaluation. Current financials show small but improving growth, yet the company remains overvalued based on traditional metrics due to the anticipated crypto transition. I expect the merger to pass, transforming Asset Entities into a top-100 Bitcoin treasury and resetting its growth story and valuation profile. I hereon share my sentiment on Asset Entities stock and why I see more upside ahead. Investment Thesis The next few weeks are critical for Asset Entities ( ASST ) stock. The SEC, back in August, declared the upcoming merger with Strive allowed. Now, everything depends on a special shareholder meeting that will take place on September 9th to decide if the merger goes through or not. Here’s the catch: about 40% of the vote has already been secured in favor of the merger via the company board. With a majority needed to rule, they require just an additional 11% from shareholders for the merger to proceed. If Asset Entities were to merge with Strive, shares would continue trading under the same ticker and should undergo a significant revaluation upwards. Hence, I'm maintaining my strong buy rating on the stock as I see odds lined up in favor of this going through. In my previous coverage of Asset Entities, I initiated with a strong buy rating, and while we saw the stock go through large upward swings, I will admit I published my buy call a little too early. The stock is up 68% on the one-month chart but is down around 6% since my strong buy. With the merger likely to go through, I feel the market can now properly value this company as a Bitcoin treasury moving forward, and I see the stock price reacting positively. The good news is that the company still holds over $750 million via the previous PIPE investment, ready to open up a position in Bitcoin at the right time. Other companies, such as Sharplink Gaming ( SBET ), have gone through similar transition periods , which saw their stock trading at much higher premiums after the move to a crypto treasury. Asset Entities is still behind in terms of their timeline for the transition; they’re yet to own any crypto. However, after next week, we could see them take a very big step towards becoming a treasury. Financials For the most recent quarter , the company brought in just $173,000 in 2Q25, a figure that is up 86% year over year. For the first half of 2025, revenue was $344,000, up 58% from $218,000 in the same period last year. EPS was around a $0.17 loss, much improved from the $0.58 loss last year. If we look at these numbers alone, growth is improving, yes, but their revenue is still tiny compared to total costs. Operating expenses came in at $2.87 million vs. the $1.82 million spent in the same period last year. G&A expense was about $936,000, up 24% year over year, and management comp was $1.8 million, up 90% since 2Q24. Contract labour stayed steady at roughly $132,000. In terms of cash, the company still holds $2.52 million, with total assets at $3.26 million. The bottom line here is that while still tiny, Asset Entities is growing. We’re seeing a heavy spend on management comp and G&A continue, which is driving those losses, but equity raisings are plugging that gap; stock issuance contributed $3.1 million in 1H25 alone. They hold a very thin cash cushion for their kind of business at just 2.5 million. I don’t see this lasting long without new financing. ASST An Upcoming Merger The most recent news out of Asset Entities is that the merger with Strive Enterprises was declared effective by the SEC on August 22nd of last month. The combined company will have a name change, now called Strive, Inc., but it will continue trading under the ticker ASST. Any Strive shareholders, including equity award holders, will own about 94.2% of the merged entity. It leaves Asset Entities holding about 5.8%. Matt Cole, the CEO of Strive, will become chairman of the combined company, with Arshia Sarkhani, the Asset Entities CEO, becoming CMO and board member. Asset Entities also filed an S-4 registration statement with the SEC. It’s a registration statement that companies must file with the SEC when issuing new shares in connection with a merger or acquisition. The SEC declared this effective on the 22nd, which means regulators have finished their review, and Asset Entities are now legally allowed to move forward with soliciting shareholder votes. The company will be able to issue new shares if the merger is approved. Keep in mind that this does not mean the SEC endorses the deal; it simply means the disclosure is sufficient and investors have the full information needed to vote. That brings us to the upcoming shareholder vote next week on September 9th. Because the merger involves issuing new shares to Strive’s shareholders, Asset Entities’ shareholders must, of course, first approve. The company has set a record date of July 21st of this year, so only investors who owned shares as of that date can vote. The Asset Entities board has already lined up roughly 40% of the voting power in favour of issuing shares. Typically, the merger would require approval from a simple majority of 51%. That leaves them needing just an additional 11% to pass. If approved, the merger will close fully, leaving Asset Entities shareholders with just 5.8% of the combined company. Strive is, of course, much larger. The good news is that this is Asset Entities' window to become a public Bitcoin Treasury. They still hold about $750 million from the PIPE financing, and a Section 351 exchange is planned. Cole recently took to X to post about the upcoming vote, recommending that shareholders vote ‘yes.’ X On the flip side, if the vote doesn't pass, the merger won’t close. It would leave Asset Entities back on its own again with its current small-scale business and a very limited cash reserve. Given that fragile balance sheet, I expect any failure to merge would put significant pressure on Asset Entities and the stock. I see shares moving negatively if the vote doesn’t pass. However, with 40% of the vote already locked in, management only needs a modest margin of additional support. I expect the merger to get approved, and we should see Asset Entities transition from a small marketing company with under $3 million in assets to a Bitcoin Treasury play with over $1 billion in crypto. A Position In Bitcoin If the merger were to go through, how well-positioned are Asset Entities to capitalize on a Bitcoin position? Well, the company plans a Section 351 Exchange, which would immediately transfer Bitcoin into the new entity and make it one of the top 100 corporate Bitcoin treasuries. At that point, we would see Bitcoin as the primary asset on the company's balance sheet next quarter, not cash flow from a business. Their main lever would, of course, be the value of Bitcoin itself. So profitability would have depended on Bitcoin going up. At that point, similar to other treasuries, the stock price will fluctuate based on the value of the crypto the treasury holds. We know they hold about $750 million for the PIPE, so they're ready to accumulate Bitcoin aggressively should the price be right. We may even see them issue debt or equity in the future, similar to what MicroStrategy ( MSTR ) has done in the past to buy more crypto. The CFO of Strive recently stated on X that the company is ready to start buying crypto as soon as the voting is passed. X So, at current Bitcoin prices of $110,000, the company could assume a total of 13,636 Bitcoin, given it has $750 million from the PIPE and an additional $750 million from warrant exercises . And with a current market cap of just $102 million, we would see the company’s value multiply sharply. I modeled the company's valuation against future Bitcoin price movements to get a sense of the valuation we could see in the near term. Remember, Bitcoin is down from those ~$120,000 highs not so long ago, so an entry point in the near term would see its average Bitcoin price fairly low. If the vote goes through on the 9th, I would expect Asset Entities to open a position fairly quickly. The Techie Valuation Valuation here is quite tricky to pinpoint since the company is going through such a transitional period. Asset Entities holds a market cap of roughly $102 million, with an enterprise value of just $100 million and no debt. On top of this, their current revenue stream is extremely small, just $344,000 in 1G25 and an annualized figure of $0.7 million. So at current levels, they look highly overvalued compared to that peer group sector. But keep in mind that the sector is formed of communication services companies, and if this merger goes through, Asset Entities will become a full Bitcoin treasury. As of now, on a trailing basis, they hold an EV to sales ratio of 131.06x and a price to sales ratio of 77x against sector medians of just 1.9x and 1.3x, respectively. Its price-to-book ratio of 38x also exceeds the peer group median of just 2x. What this all means is that the market isn't valuing Asset Entities as a small digital marketing business anymore. The probability of the merger going through has already been priced in by the market, and with the price of Bitcoin near all-time highs, Asset Entities finds itself quite overvalued. If the merger closes and the PIPE financing plus the Section 351 Bitcoin exchange go through, the combined entity’s balance sheet and growth story will reset entirely. What's Next? All eyes should be on the shareholder vote next week on the 9th of September. If you’ve held shares since before July 21st, then you’re eligible to vote. I expect it will pass, and we should see them open a Bitcoin position sometime after.