Ramaswamy’s Strive to Buy Semler Scientific in All-Stock Bitcoin Treasury Deal

Bitcoin treasury company Strive has recently announced an all-stock agreement to acquire Semler Scientific. The move will unite two of the most aggressive buyers of Bitcoin under one roof and create a new heavyweight in the digital asset treasury sector.

Strive Offers a Bold Premium for Semler Shareholders

Strive, co-founded by entrepreneur and politician Vivek Ramaswamy, said it is offering Semler investors a major premium. Each share of Semler Scientific will convert into 21.05 Strive Class A shares. 

Based on closing prices from September 19, this values Semler at roughly $90.52 per share, a staggering 210% premium. Such a generous offer signals Strive’s confidence in Semler’s Bitcoin-focused strategy. 

Strive emphasized that the merger will be built on a preferred-equity-only capital structure. This model is designed to avoid the risks of traditional debt while ensuring more predictable growth of Bitcoin per share. 

The company made clear that its long-term goal is to increase Bitcoin ownership at a pace that outperforms the coin’s market price.

Strive and Semler Unite to Build a Massive Bitcoin Reserve

Both Strive and Semler have already established reputations as aggressive Bitcoin buyers. Strive recently disclosed a purchase of 5,816 BTC for $675 million, lifting its balance sheet to 5,886 BTC. 

Semler has also grown rapidly, using equity, debt, and cash flow to build a reserve of over 5,000 BTC. Together, the merged firm would hold more than 10,900 BTC before additional financing, exceeding Semler’s target to hold 10,000 BTC stash by 2025 year end.

As announced, leadership will largely remain in Strive’s hands, though Semler’s executive chairman, Eric Semler, is expected to join the board of the new entity. This merger highlights a wider trend in the digital asset treasury market. More than $20 billion has flowed into such companies this year, but the strategy has shifted. 

Instead of chasing growth through constant capital raises, firms are turning toward consolidation and creative deal structures. 

This comes as shrinking premiums on crypto asset values have made it harder to issue new equity for Bitcoin purchases. This has left many treasury companies trading at or even below the value of their Bitcoin holdings. 

Against this backdrop, stock-for-stock deals like this are gaining appeal because such transactions boost Bitcoin reserves instantly. This approach also avoids adding debt, making it attractive to both companies and investors.

Investor Response Splits

Markets reacted quickly to the news. Strive’s shares ASST listed on Nasdaq fell more than 7% after the news. 

Meanwhile, Yahoo Finance data revealed Semler’s stock (SMLR) jumped over 20%. The split reaction shows the risk and reward investors see in this new wave of Bitcoin treasury mergers. Investors want both scale and creativity in growth strategies. 

However, they remain cautious as bold moves face challenges from macroeconomic headwinds and tighter financing conditions.