- Strive will acquire Semler in an all-stock deal worth over $90 a share.
- The combined firm’s nearly 11,000 Bitcoin puts it just outside the top ten.
- Absorbing weaker firms may be the only way treasuries defend their value.
After a stretch of explosive growth and frothy stock premiums, the Bitcoin treasury trade looks to be entering a cannibal phase.
On Monday, newly public Strive announced it will acquire fellow Bitcoin-holding firm Semler Scientific in an all-stock deal worth over $1.3 billion.
The combined firm’s nearly 11,000 Bitcoin would lift it from 16th to just outside the top ten among public holders, according to Bitcoin Treasuries.
“This merger cements Strive’s position as a top Bitcoin treasury company, and we believe our alpha-seeking strategies and capital structure position us to outperform Bitcoin over the long run,” said Matt Cole, Strive’s chairman and CEO.
With direct Bitcoin purchases no longer driving the same upside, the path to outperforming the asset itself may run through similar mergers and acquiring smaller treasuries for their coins.
Early imitator
Michael Saylor kicked off the Bitcoin treasury trend in 2020 when his software company MicroStrategy started to hoard the cryptocurrency.
Five years and one name-change later, Strategy’s stock value is up some 2,300%.
Other firms have, understandably, tried to copy the trade. Semler was among the first companies to mimic Saylor’s playbook, launching its Bitcoin treasury strategy in May 2024, roughly a year before the field became crowded with imitators.
But the move hasn’t exactly paid off for shareholders. Semler’s stock trades a little above $30, only a few percent higher than when it first announced its Bitcoin pivot.
Shares briefly crested $80 in late 2024, after Donald Trump’s presidential victory lifted hopes of favourable crypto regulation, but the rally has long since fizzled.
The Strive–Semler tie-up isn’t the only sign of consolidation in the sector. Just last month, KindlyMD completed its merger with Nakamoto Holdings, raising $540 million through a PIPE financing to fund Bitcoin purchases.
That deal was smaller in scope, but served the same purpose: showing how corporate treasuries are pursuing growth by bolting together businesses and financing structures instead of just making direct Bitcoin buys.
And with recent reports suggesting that one in three Bitcoin treasuries have slipped below their Bitcoin value, it looks like the stock-for-Bitcoin flywheel is breaking down.
Similar mergers and acquisitions to thin the herd may be the only way forward for the top firms to justify their premiums.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
