coindesk.com
Strive (ASST) shareholders have approved the acquisition of Semler Scientific (SMLR), but investors were caught off guard by a one-to-20 reverse stock split announced alongside the deal, sending shares of both companies lower.
The all-stock transaction includes the transfer of Semler’s 5,048 BTC to Strive’s balance sheet. After the merger, the combined company will hold nearly 12,798 Bitcoin, placing it ahead of Tesla (TSLA) and Trump Media & Technology Group (DJT) in bitcoin reserves and ranking it 11th among corporate holders.
That includes Strive's latest purchase of 123 BTC for $11.3 million at an average price of $91,561.
Strive said the reverse split is intended to "align share price with institutional participation standards," according to a statement by Strive CIO Ben Werkman. Strive's stock was trading below $1 for much of the past three months.
Strive's stock plummeted to as low as $0.90 following the announcement and traded 12% lower recently, while Semler shares fell nearly 10%.
Matt Cole, CEO and chairman of Strive, defended the reverse split as being "meaningless from a valuation standpoint," while it "opens the door for several institutions to be able to buy" the stock after.
The merger and stock maneuver underscore the consolidation pressure in the digital asset treasury sector as investor enthusiasm has cratered along with stock prices in recent months. Many firms in the space now trade well below the net asset value of their crypto holdings, limiting their ability to raise capital to expand reserves. Mergers and asset roll-ups have emerged as one of the few remaining tools for scaling operations and gaining market visibility.
Strive said it plans to monetize Semler’s medical diagnostics business and retire roughly $120 million in outstanding debt tied to Semler, including a $100 million convertible note and a $20 million loan from Coinbase (COIN).
The company stated that it will maintain a lean corporate structure, focusing on BTC operations and yield generation.