Ramaswamy-backed Strive buys Semler Scientific in Bitcoin treasury merger

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Strive Inc., the plus manager turned Bitcoin treasury institution led by erstwhile statesmanlike campaigner Vivek Ramaswamy, has agreed to get Semler Scientific — a determination that positions the combined entity arsenic 1 of the largest firm holders of Bitcoin.

In a Monday announcement, the companies said the all-stock transaction volition assistance Semler shareholders Strive shares alternatively of cash. Each Semler stock volition beryllium exchanged for 21.05 shares of Strive Class A stock, representing a 210% premium implicit Semler’s pre-deal price.

Alongside the merger, Strive disclosed it had purchased 5,816 Bitcoin (BTC) for astir $675 million, boosting its full holdings to 5,886 BTC. Before the acquisition, Strive was a comparatively insignificant subordinate successful the Bitcoin treasury space, with conscionable 70 BTC connected its books.

The combined institution volition present power much than 10,900 BTC, making it the 12th-largest nationalist Bitcoin holder — up of Hut 8 Mining, Block Inc. and Galaxy Digital, according to manufacture data.

Ramaswamy archetypal outlined Strive’s Bitcoin treasury strategy successful May, coinciding with the company’s plans to spell nationalist via a reverse merger.

Semler Scientific, a health-tech steadfast that adopted Bitcoin arsenic its superior treasury reserve plus successful 2024, has steadily built up its holdings done aggregate purchases. Its astir caller earnings report was mixed, showing a 43% year-over-year gross diminution but a nett income of $66.9 million.

Bitcoin treasury mergers — the commencement of a trend?

The Strive–Semler Scientific merger comes amid the emergence of integer plus treasury companies, which person accumulated billions of dollars successful Bitcoin and, to a lesser extent, different cryptocurrencies specified arsenic Ether (ETH) and Solana (SOL).

According to Standard Chartered, the woody whitethorn besides underscore a broader trend: compressed marketplace nett plus values (mNAVs), which tin summation fiscal risks and marque enlargement much difficult.

For crypto treasurers, mNAV represents the ratio of a company’s endeavor worth to its integer plus holdings. When this ratio falls beneath 1, expanding reserves becomes much hard and riskier, peculiarly if funded done debt.

Standard Chartered precocious noted that manufacture consolidation is apt nether these conditions, with larger, much liquid players positioned to upwind volatility and rise superior for acquisitions. If mNAVs stay depressed, the slope said, stronger companies could determination to get weaker rivals.

HashKey Capital CEO Deng Chao precocious cautioned that lone crypto treasury companies with a semipermanent strategy volition “survive immoderate market,” emphasizing the value of gathering lasting worth alternatively than chasing short-term gains.

“Digital assets themselves are not inherently unsustainable; it is however they are managed that makes the difference,” Chao told Cointelegraph.

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