Strive shares fell approximately 12% after the asset management firm revealed an all-stock arrangement to acquire Semler Scientific, which will substantially enhance its Bitcoin reserves. The firm reported that the merger would integrate Semler’s 5,048 BTC, increasing Strive’s overall holdings to 12,797.9 BTC, classifying it as the 11th largest Bitcoin-holding public company.

As part of the acquisition plans, Strive intends to capitalize on Semler’s business operations and alleviate existing debts—which include a $100 million convertible note and a $20 million loan from Coinbase—pending market conditions.

The deal involves executing a 1-for-20 reverse stock split affecting both Class A and Class B shares, thereby reducing the total outstanding shares.

Market Response

Strive’s stock reacted in a volatile manner post-announcement. Following its initial reveal of a Bitcoin treasury strategy on May 7, shares surged from $0.61 to a high of $13.01. Presently, the stock trades around $0.97. Similarly, Semler Scientific experienced fluctuating share prices that climbed to $67.17 in December 2024, down from about $30 earlier that year.

In related news, Metaplanet, a Japanese hotel group, holding 35,102 BTC on its balance sheet, has also seen its stocks soar amid such treasury strategies, showcasing the market complexities linked with digital asset management.