Strive Asset Management has struck a deal to acquire Semler Scientific, a company with a focus on Bitcoin, in an all-stock transaction. This eliminates the need for any cash changing hands.
The agreement, which was publicly disclosed on September 22nd, specifies that each share of Semler Scientific will be exchanged for 21.05 shares of Strive Class A common stock. This values Semler Scientific at $90.52 per share. This valuation reflects a premium exceeding 200% relative to Semler’s recent market valuation.
The planned merger envisions a dual approach for the combined entity’s future operations. Semler’s existing and profitable diagnostic product line might be commercialized directly, or potentially divested, aiming to provide returns to shareholders.
Concurrently, leadership from both Strive and Semler intend to broaden their scope within the preventative diagnostics sector. New leadership is slated to guide this strategic transition.
The current board members of Strive will continue in their roles. Eric Semler, Executive Chairman of Semler Scientific, will be integrated into the board of the merged company.
Semler described the agreement as a pathway to gain “direct investment in a leading-edge Bitcoin strategy within the public market space.” He also noted the potential to develop the firm’s diagnostics into a preventative healthcare platform, emphasizing the early identification of long-term illnesses.
Bitcoin treasury
Coinciding with the acquisition announcement, Strive revealed it had significantly boosted its Bitcoin holdings. The company acquired 5,816 Bitcoin at an average purchase price of $116,047. This investment totaled $675 million, inclusive of all associated fees.
This acquisition increased Strive’s total Bitcoin treasury to 5,886 BTC. According to publicly available data, the merger should result in the combined company possessing over 10,900 BTC. If so, this would position the company among the top 15 largest corporate Bitcoin holders globally.
Matt Cole, Chairman & CEO of Strive, stated:
“We are confident that our alpha-focused strategies and our existing capital framework give us a performance edge over Bitcoin in the long-term. This transaction highlights our capability to enhance Bitcoin holdings and Bitcoin per share faster than others in the industry, increasing shareholder equity.”
These dealings reflect Strive’s strategic ambition to function as a Digital Asset Treasury operator. Earlier this year, the organization acquired Asset Entities, leading to a rebranding under the Strive banner, while maintaining its Nasdaq listing.
At that juncture, executives portrayed a strategy relying on the trading of company shares for Bitcoin. This approach, they asserted, increases tax efficiency and enables the acquisition of businesses that hold substantial cash reserves, but have undervalued equity.