Strive bets $675 million to acquire Bitcoin treasury company at 200% premium to stock price

Asset manager Strive has reached an statement to acquisition Bitcoin-focused Semler Scientific successful a afloat equity-based alternatively than cash-based deal.

Under the presumption announced Sept. 22, each Semler Scientific stock volition person into 21.05 Strive Class A communal shares, valuing the people astatine $90.52 per share. That terms represents a premium of much than 200% compared with its caller marketplace value.

The merger outlines a two-track program for the aboriginal company. Semler’s well-established diagnostic enactment could beryllium monetized straight oregon spun retired to present shareholder returns.

At the aforesaid time, Strive and Semler leaders program to broaden the scope of preventative diagnostics, with a caller absorption squad guiding the transition.

Strive’s existent directors volition stay successful place, portion Semler Scientific Executive Chairman Eric Semler volition articulation the combined board.

Semler called the statement a mode to unafraid “direct information successful 1 of the astir innovative Bitcoin strategies successful the nationalist markets,” pointing to the accidental to germinate the firm’s diagnostic tools into a preventative attraction level focused connected aboriginal detection of chronic illness.

Bitcoin treasury

Alongside the acquisition announcement, Strive disclosed a large balance-sheet determination of acquiring 5,816 Bitcoin astatine an mean terms of $116,047. This amounted to a full of $675 million, including fees.

This summation lifted Strive’s treasury to 5,886 BTC. According to nationalist information trackers, erstwhile the merger closes, the combined institution is projected to power much than 10,900 BTC, a holding ample capable to spot it among the 15 biggest firm Bitcoin treasuries globally.

Matt Cole, Chairman & CEO of Strive, said:

“We judge our alpha-seeking strategies and superior operation presumption america to outperform Bitcoin implicit the agelong run. This transaction showcases however we tin turn Bitcoin holdings and Bitcoin per stock astatine an unmatched gait successful the manufacture to thrust equity worth accretion.”

These transactions exemplify Strive’s desired positioning strategy arsenic a Digital Asset Treasury operator. Earlier this year, the steadfast absorbed Asset Entities, which enabled it to rebrand nether the Strive sanction and proceed trading connected Nasdaq.

At that time, executives described a exemplary built connected exchanging equity for Bitcoin, an attack they argued improves taxation efficiency, and acquiring companies affluent successful currency but undervalued successful equity markets.

The station Strive bets $675 cardinal to get Bitcoin treasury institution astatine 200% premium to banal price appeared archetypal connected CryptoSlate.