Strive has announced its intention to acquire Semler Scientific in an all-stock transaction estimated at approximately $1.34 billion. As a bitcoin-treasury company supported by Vivek Ramaswamy, a former Republican U.S. presidential candidate, Strive aims to expand its cryptocurrency holdings through this acquisition.
Under the terms of the agreement, Semler shareholders will receive 21.04 Class A common shares of Strive for each share they own in Semler. This pricing sets Semler’s valuation at $90.52 per share—marks a staggering premium of over 210% compared to its closing price on Friday.
This acquisition comes just months after Strive revealed a merger with Asset Entities, a strategic move that is part of its broader ambition to list on Nasdaq and to adopt a buy-and-hold strategy for bitcoin. Following the news, Semler’s stock saw an uptick of 8.3% in early trading, while shares of Strive dropped by 8%.
In addition to the merger, Strive announced intentions to purchase 5,816 bitcoin for a total investment of $675 million. Post-acquisition, the combined entity is expected to possess more than 10,900 bitcoin. Strive plans to finance further purchases through a “preferred equity only” model, indicating a commitment to its bitcoin treasury strategy.
Semler is more than just a bitcoin holding company. It operates in the healthcare sector, offering a point-of-care test to measure arterial blood flow in extremities. The dual focus on cryptocurrency and healthcare reflects a growing trend among corporations to adopt diverse and innovative treasury strategies.
Vivek Ramaswamy, who co-founded Strive in 2022, previously established drugmaker Roivant Sciences in 2014 but stepped away from its board in February 2023 to concentrate on his presidential ambitions. His involvement in Strive and advocacy for cryptocurrency underscores the emerging relationship between established industries and digital assets.
The move to acquire Semler aligns with a broader trend of corporate bitcoin adoption, inspired in part by Michael Saylor’s pioneering strategy of leveraging cash reserves to invest in bitcoin, which began in 2020. The cryptocurrency has shown remarkable growth, rising 20.5% this year, outpacing the S&P 500’s 13.3% increase, driven in part by favorable regulatory developments that have bridged the gap between cryptocurrency and conventional finance.
In terms of advisory roles, Cantor Fitzgerald acted as the financial advisor to Strive for the acquisition, while LionTree Advisors served as the advisor to Semler, emphasizing the complex financial strategies involved in this significant merger.
