With recent declines in the valuations of crypto treasury companies, consolidation within the sector has become almost inevitable. The long-anticipated wave of mergers and acquisitions appears to have commenced, as Strive (ASST) announced its agreement to acquire Semler Scientific (SMLR) in an all-stock transaction.
The deal, which reflects a substantial 210% premium based on Friday’s market close, is set at $90.52 per share. In this transaction, shareholders of Semler will receive 21.05 shares of Strive for each share they own. As part of the merger, Semler Executive Chairman Eric Semler is expected to take a seat on the board of the newly combined entity.
In a pivotal move for the combined company’s cryptocurrency strategy, Strive concurrently revealed its purchase of 5,816 bitcoins, totaling approximately $675 million with an average acquisition price of $116,047 per bitcoin. When added to Semler’s existing holdings of roughly 5,000 bitcoins, this merger will yield a total of over 10,900 BTC for the new entity.
The decision to merge comes amid significant challenges for Semler Scientific, whose shares have faced intense pressure, trading substantially below the total value of the Bitcoin on its balance sheet. This situation has likely detracted from the perceived value of its medical equipment business. The collapse of the cryptocurrency market earlier this summer has resulted in various companies facing similar circumstances.
“This merger cements Strive’s position as a top Bitcoin treasury company,” remarked Matt Cole, chairman and CEO of Strive. “We believe our alpha-seeking strategies and capital structure position us to outperform Bitcoin over the long run.”
Following the announcement, Strive’s shares saw a premarket increase of 9.3%, rising to $4.71. In contrast, shares of Semler did not trade after the announcement but had closed at $29.18 on Friday.
