Strive to buy Semler in $1.3 bn stock deal to boost bitcoin holdings

Strive said on Monday it will acquire Semler Scientific in an all-stock deal valued at about $1.34 billion, as the bitcoin-treasury company backed by former Republican US presidential candidate Vivek Ramaswamy moves to expand its cryptocurrency holdings. 

Semler shareholders will receive 21.04 Class A common shares of Strive for each Semler share, valuing Semler at $90.52 per share, a premium of more than 210 per cent to its Friday close. 

The deal comes less than five months after Strive announced a merger with Asset Entities as part of its plan to list on Nasdaq and pursue a strategy of buying and holding bitcoin. 

Shares of Semler rose 8.3 per cent in early trading, while Strive fell 8 per cent. 

Strive also said it will purchase 5,816 bitcoin for a total of $675 million. The combined company would own more than 10,900 bitcoin and plans to fund future purchases using a “preferred equity only model. 

Semler, which in addition to bitcoin holdings operates a healthcare business, offers a point-of-care test that measures arterial blood flow in the extremities. 

Ramaswamy, a longtime crypto advocate, co-founded Strive in 2022. He previously founded drugmaker Roivant Sciences in 2014 and left its board in February 2023 to focus on his presidential campaign. 

The deal reflects growing corporate adoption of bitcoin treasury strategies, following the approach pioneered by Michael Saylor's Strategy, which began purchasing bitcoin with cash reserves in 2020. 

Bitcoin has gained 20.5 per cent this year, outpacing the S&P 500's 13.3 per cent rise, as regulatory wins have helped bridge the gap between the cryptocurrency and traditional finance. 

Cantor Fitzgerald acted as financial advisor to Strive on the deal, while LionTree Advisors served as advisor to Semler.