Strive Inc., the asset manager turned Bitcoin treasury company led by former presidential candidate Vivek Ramaswamy, has agreed to acquire Semler Scientific — a move that positions the combined entity as one of the largest corporate holders of Bitcoin.
It’s Monday announcementBoth companies stated that shareholders of Semler will receive Strive class A stock instead. The exchange of each Semler stock for 21,05 Strive Class A shares represents a 210% increase over Semler’s previous price.
Strive revealed that, in addition to the merger it has purchased 5,816 Bitcoin.BTCThe total value of its holdings has now risen to 5,886 BTC. Strive had only 70 BTC before it acquired the company.
The combined company will now control more than 10,900 BTC, making it the 12th-largest public Bitcoin holder — ahead of Hut 8 Mining, Block Inc. and Galaxy Digital, according to industry data.
Ramaswamy outlines the situation in his first outline Strive’s Bitcoin treasury strategy The reverse merger was announced in May to coincide with the plans of the company for a public offering.
Semler Scientific has become the first health-tech business to adopt Bitcoin as its main treasury asset. steadily built up its holdings Through multiple purchases. Purchases made within the last six months. earnings report It was a mixed bag, with a revenue drop of 43% compared to the prior year but an income net of $66,9 millions.
Related: Semler Scientific plans Bitcoin holdings of 105,000 BTC by 2027
Bitcoin treasury mergers — the start of a trend?
The Strive–Semler Scientific merger comes amid the rise of digital asset treasury companies, which have accumulated billions of dollars in Bitcoin and, to a lesser extent, other cryptocurrencies such as Ether (ETHSolana (SOL).
Standard Chartered says the Standard Chartered deal could also be a sign of a broader tendency: a trend towards compressed market net assets (mNAVs), resulting in increased financial risks, and making expansion harder.
mNAV is the ratio between a company’s enterprise value and its holdings of digital assets. This ratio is below 1 and it becomes harder to expand reserves, especially if they are funded by debt.
Standard Chartered recently noted that industry consolidation In these conditions it’s likely to happen, as larger players with more liquidity will have the ability to weather fluctuations and generate capital for purchases. The bank stated that if mNAVs continue to be depressed, then stronger companies may decide to buy weaker competitors.
Deng Chao, CEO of HashKey Capital, recently warned that only companies with long-term strategies will succeed in the crypto currency treasury market. “survive any market,” It is important to build lasting value, rather than chase short-term profits.
“Digital assets themselves are not inherently unsustainable; it is how they are managed that makes the difference,” Chao told Cointelegraph.
Related: Bitcoin mining stocks outperform BTC as investors bet on AI pivots
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
