Semler Scientific Shares Trade Below Implied Value in Strive Acquisition

Semler Scientific's (SMLR) shares closed at $32.06, significantly lower than the implied acquisition value of $86.30 in its all-stock purchase by Strive (ASST). This reflects both skepticism and potential opportunity in the rising trend of bitcoin treasury mergers and acquisitions (M&A).

Benchmark analyst Mark Palmer maintains a buy rating on Semler, adjusting the price target from $101 to $86 due to the Strive deal.
The fixed exchange ratio is 21.05 Strive shares per Semler share, offering a potentially profitable arbitrage for investors.
Strive holds 5,886 BTC and will acquire Semler's 5,021 BTC, totaling 10,907 BTC, ranking it twelfth among public companies.
The merger provides Strive with crypto reserves and ownership of Semler’s diagnostics business, which may be monetized or spun off.
The deal is part of a growing trend of stock-for-stock bitcoin treasury mergers, leveraging equity to acquire BTC favorably.
Risks include dependency on S-4 registration effectiveness and Semler shareholder approval; fluctuations in Strive's share or bitcoin price could affect the deal.

SMLR shares increased by 2.5% premarket to $32.86, while ASST decreased by 4.9% to $3.90.