Strive Inc., the asset supervisor turned Bitcoin treasury firm led by former presidential candidate Vivek Ramaswamy, has agreed to purchase Semler Scientific — a transfer that positions the mixed entity as one of many largest company holders of Bitcoin.
In a Monday announcement, the businesses mentioned the all-stock transaction will grant Semler shareholders Strive shares as a substitute of money. Every Semler share can be exchanged for 21.05 shares of Strive Class A inventory, representing a 210% premium over Semler’s pre-deal worth.
Alongside the merger, Strive disclosed it had bought 5,816 Bitcoin (BTC) for about $675 million, boosting its whole holdings to 5,886 BTC. Earlier than the acquisition, Strive was a comparatively minor participant in the Bitcoin treasury area, with simply 70 BTC on its books.
The mixed firm will now management greater than 10,900 BTC, making it the Twelfth-largest public Bitcoin holder — forward of Hut 8 Mining, Block Inc. and Galaxy Digital, in accordance to trade data.
Ramaswamy first outlined Strive’s Bitcoin treasury strategy in Might, coinciding with the corporate’s plans to go public through a reverse merger.
Semler Scientific, a health-tech agency that adopted Bitcoin as its main treasury reserve asset in 2024, has steadily built up its holdings by a number of purchases. Its most up-to-date earnings report was blended, displaying a 43% year-over-year income decline however a internet revenue of $66.9 million.
Associated: Semler Scientific plans Bitcoin holdings of 105,000 BTC by 2027
Bitcoin treasury mergers — the beginning of a pattern?
The Strive–Semler Scientific merger comes amid the rise of digital asset treasury corporations, which have gathered billions of {dollars} in Bitcoin and, to a lesser extent, different cryptocurrencies similar to Ether (ETH) and Solana (SOL).
In accordance to Normal Chartered, the deal may additionally underscore a broader pattern: compressed market internet asset values (mNAVs), which may enhance monetary dangers and make growth tougher.
For crypto treasurers, mNAV represents the ratio of an organization’s enterprise worth to its digital asset holdings. When this ratio falls beneath 1, increasing reserves turns into tougher and riskier, significantly if funded by debt.
Standard Chartered recently noted that industry consolidation is probably going beneath these situations, with bigger, extra liquid gamers positioned to climate volatility and lift capital for acquisitions. If mNAVs stay depressed, the financial institution mentioned, stronger corporations may transfer to purchase weaker rivals.
HashKey Capital CEO Deng Chao not too long ago cautioned that solely crypto treasury corporations with a long-term technique will “survive any market,” emphasizing the significance of constructing lasting worth somewhat than chasing short-term positive factors.
“Digital belongings themselves are usually not inherently unsustainable; it’s how they’re managed that makes the distinction,” Chao told Cointelegraph.
Associated: Bitcoin mining stocks outperform BTC as investors bet on AI pivots
