Strive Completes Semler Scientific Acquisition, Market Reacts With Sharp Stock Decline Amid Reverse Split

Strive shareholders have approved the company’s acquisition of Semler Scientific in an all-stock transaction, but the market responded with significant skepticism. Both Strive and Semler shares tumbled more than 10% following the announcement, with investors particularly caught off guard by a one-for-20 reverse stock split introduced alongside the deal. Strive’s stock price plummeted to lows of $0.90 and declined 12% shortly after the announcement, while Semler shares fell approximately 10%.

Bitcoin Holdings Surge to Nearly 12,798 BTC

The acquisition immediately strengthens Strive’s position as a significant corporate Bitcoin holder. Through this all-stock deal, Semler’s 5,048 BTC transfer to Strive’s balance sheet combined with the company’s existing holdings—including a recent purchase of 123 BTC at $91,561 per coin for $11.3 million—brings the combined entity’s total Bitcoin reserves to approximately 12,798 BTC. This positions Strive ahead of major corporations like Tesla and Trump Media & Technology Group in Bitcoin holdings, securing 11th place among all corporate Bitcoin reserve holders globally.

Strategic Reverse Split: Bridging Valuation Gaps With Institutional Standards

The reverse stock split proved to be the most controversial aspect of the merger announcement. Strive’s leadership defended the maneuver as strategically necessary rather than fundamentally transformative. CIO Ben Werkman stated the reverse split aims to “align share price with institutional participation standards,” addressing a persistent challenge: Strive’s stock had traded below $1 for the previous three months, making it difficult for major institutional investors to participate due to regulatory and policy constraints on penny stocks.

CEO Matt Cole characterized the reverse split as “meaningless from a valuation standpoint,” emphasizing instead that it “opens the door for several institutions to be able to buy” the company’s stock moving forward. This framing highlights a broader reality in the digital asset treasury sector—companies trading below their net asset value struggle to raise capital for operational expansion, even when holding substantial cryptocurrency reserves.

Debt Resolution and Business Consolidation

Beyond Bitcoin accumulation, Strive targets substantial operational restructuring. The company plans to retire approximately $120 million in outstanding Semler-related debt, including a $100 million convertible note and a $20 million loan from Coinbase. Simultaneously, Strive intends to monetize Semler’s medical diagnostics business, converting a non-core asset into immediate capital recovery.

The merger reflects intensifying consolidation pressure within the digital asset treasury sector. As investor enthusiasm has cooled and stock valuations compressed in recent months, many firms in the space now trade significantly below the net asset value of their crypto holdings. Traditional capital-raising mechanisms have become constrained, making mergers and asset consolidations among the few viable scaling strategies available. By combining operations, Strive gains enhanced market visibility while maintaining a lean corporate structure focused on Bitcoin operations and yield generation.

This transaction underscores a critical inflection point: companies with substantial digital asset reserves must innovate structurally to bridge the valuation gap between their crypto holdings and market capitalization, making strategic mergers and capital restructuring essential tools for survival and growth in the evolving crypto institutional landscape.