Strive Asset Management is acquiring Semler Scientific at a $1.3 billion valuation, gaining 5,000 Bitcoin in an all-stock deal at $90.52 per share. After the acquisition, Strive will own 10,900 Bitcoin worth roughly $1.2 billion. Semler’s stock price jumped 11% to $32.28. Strive’s stock fell 6% to $4 but remains up 700% year-to-date.

Semler’s stock price had dipped 35% since its first Bitcoin purchase in February. Strive adopted Bitcoin as a treasury reserve asset in May and merged with Asset Entities. Experts predict a wave of consolidation among Bitcoin-buying firms. Strive’s deal with Semler represented a 210% premium to its value.

TD Cowen analyst Lance Vitanza identified Semler’s discount as “meaningful,” impacting its funding mechanism. Matthew Sigel of VanEck warned that Semler was in a position many Bitcoin treasury firms may face: trading close to NAV and needing to show capital discipline. Struggling Bitcoin treasury firms are seen as key targets for buying Bitcoin at a discount.

Strive CEO Matt Cole mentioned watching struggling companies closely for potential buying opportunities. While not expecting immediate acquisitions, he sees a likelihood of acquiring Bitcoin treasury companies in the future. Cole emphasized the importance of monitoring companies that may face challenges, indicating a strategic approach to potential acquisitions.

Read more at Yahoo Finance: Strive Asset Management to Acquire Semler Scientific, $567 Million in Bitcoin in All-Cash Deal