Strive and Semler Merger Reshapes Bitcoin Treasury Landscape Despite Market Backlash

Strive Asset Management (ASST) shareholders have approved the acquisition of Semler Scientific (SMLR), marking a significant move in the rapidly evolving digital asset treasury sector. However, the announcement was accompanied by an unexpected one-to-20 reverse stock split, which unsettled investors and led to a sharp decline in the share prices of both companies.

The all-stock merger brings Semler Scientific’s 5,048 Bitcoin onto Strive’s balance sheet. Combined with Strive’s existing holdings, including a recent purchase of 123 BTC for $11.3 million at an average price of $91,561, the merged entity will control approximately 12,798 Bitcoin. This positions Strive ahead of major corporate holders such as Tesla and Trump Media & Technology Group, making it the 11th-largest corporate Bitcoin holder globally.

Despite the strategic rationale, the reverse stock split drew criticism from the market. Strive’s shares, which had traded below $1 for much of the past three months, fell to around $0.90 following the announcement and were down roughly 12% in recent trading. Semler Scientific shares also declined by nearly 10%. Strive’s chief investment officer, Ben Werkman, said the reverse split was designed to align the stock price with institutional participation standards, while CEO and chairman Matt Cole emphasized that the move was “meaningless from a valuation standpoint” and intended to broaden institutional access.

The deal highlights ongoing consolidation pressure within the Bitcoin treasury and digital asset sector. As investor enthusiasm has waned and stock prices have fallen, many companies now trade below the net asset value of their crypto holdings, limiting their ability to raise capital. Mergers and asset roll-ups have become one of the few viable strategies to scale operations and maintain visibility.

Strive also plans to monetize Semler’s medical diagnostics business and retire approximately $120 million in Semler-related debt, including a $100 million convertible note and a $20 million loan from Coinbase. Following the merger, Strive said it will maintain a lean corporate structure focused on Bitcoin operations, yield generation, and long-term balance sheet growth.