Strive Acquires Semler in First Bitcoin Treasury Merger
Strive (ASST) has announced an all-stock deal to acquire Semler Scientific (SMLR), marking the first merger of two publicly traded bitcoin treasuries. This move signals a potential wave of consolidation in the Digital Asset Treasury (DAT) sector.
Key Points:
- The merger will create a company holding nearly 11,000 BTC after Strive's $675 million purchase of additional coins.
- Semler's shares were trading below the value of its bitcoin holdings, offering Strive an opportunity to consolidate and boost its bitcoin per share metric.
- Acquiring cash-flowing businesses is seen as a strategy to offset dilution and fund ongoing BTC purchases, as demonstrated by Japan's Metaplanet.
- Mergers with existing companies are preferred over SPACs due to complexities and dilution risks associated with the latter.
The evolution of DATs involves scaling through mergers, acquiring profitable businesses, or partnering with established operators to ensure growth and legitimacy. FRNT Financial has entered into a consulting agreement with an undisclosed DAT, highlighting the trend towards strategic advisory and growth initiatives in the sector.