Strive Acquires Semler to Expand Bitcoin Treasury Amid Market Concerns
Impact of Acquisition on Strive and Semler Stocks
Strive Inc. (ASST) and Semler Scientific (SMLR) have experienced declines in their share prices following the acquisition announcement, which sees Semler sold to Strive. While this move expands Strive's Bitcoin treasury, it has also coincided with selling pressure on both stocks.
Is Bitcoin Treasury Strategy Affecting Stock Performance?
In an official statement, Strive confirmed the acquisition of Semler Scientific through a 100% stock transaction, obtaining Semler's 5,048.1 Bitcoin holdings. Additionally, Strive added 123 BTC to its corporate treasury. This announcement led to a drop in ASST and SMLR stock prices during the trading session. According to TradingView, ASST fell by over 12% and SMLR by nearly 10%, reflecting investor concerns about dilution and short-term uncertainties rather than long-term Bitcoin exposure.
This development mirrors recent pauses in corporate Bitcoin strategies, such as a David Beckham-backed company halting its Bitcoin treasury amid investor pressure. Upon completion, the combined entity will hold 12,797.9 Bitcoin, making Strive the eleventh largest corporate Bitcoin holder globally, surpassing Tesla and Trump Media.
Strive's Commitment to Bitcoin Treasury Strategy
Strive asserts that the acquisition aligns with its objective of increasing Bitcoin per share over time, positioning itself as a Bitcoin treasury company. Management believes Bitcoin-based balance sheets can outperform traditional corporate strategies over the long term, as evidenced by recent market trends where Bitcoin accumulation boosts stock prices of companies with rapidly expanding balance sheets.
Semler Scientific was a pioneer among U.S. public companies in adopting Bitcoin as a primary treasury asset, acquiring Bitcoin through equity, debt, and operating cash flows. The company specializes in medical devices and diagnostics for chronic diseases. Strive plans to monetize Semler's operational business post-acquisition and redeem a $100 million convertible note and a $20 million Coinbase loan from Semler, ensuring a simplified capital structure.
Evaluating Bitcoin Treasury Models Amid Market Volatility
Despite the expansion of Bitcoin holdings through mergers and increased treasuries by public companies, risks persist. Bitcoin treasury firms face potential Nasdaq delisting if share prices continue to fall, as seen with K Wave Media. The market's cautious response highlights the ongoing debate over the short-term volatility versus the potential long-term benefits of Bitcoin treasury strategies. Ultimately, the success of these models will depend on effective execution and favorable Bitcoin market conditions.