Strive and Semler shares fall double digits following merger approval

Strive (NASDAQ: ASST) and Semler (NASDAQ: SMLR) shares fell Tuesday aft Semler shareholders approved an all-stock merger to consolidate Bitcoin treasuries.

Strive banal declined 11.8% and Semler shares dropped 9.6% during the trading league pursuing the announcement. At the clip of publication, Strive and Semler shares were up respectively 3.4% and 4.7% aft marketplace unfastened connected Wednesday.

Semler shareholders voted 8,732,675 to 633,524 successful favour of the acquisition, with 43,137 abstentions. Approximately 93% of the votes formed supported the transaction. The woody allows Strive to sorb Semler’s 5,048.1 bitcoin into its firm treasury.

Strive besides announced the acquisition of an further 123 Bitcoin for its firm treasury. The steadfast paid a full of $11,264,000, astatine an mean terms of $91,561 per Bitcoin. This brings the pre-merger holdings for Strive to 7,749.8 Bitcoin. Upon closing the Semler transaction, the combined entity volition clasp 12,797.9 Bitcoin.

Strive noted this accumulation makes the combined institution the 11th largest firm holder of Bitcoin globally. The steadfast stated its holdings present surpass those of Tesla and Trump Media & Technology Group.

Management outlined plans to monetize Semler’s bequest healthcare operations wrong 12 months of the transaction close. Strive intends to usage proceeds to discontinue Semler’s $100 cardinal convertible enactment and $20 cardinal Coinbase loan. The institution aims to support a elemental firm operation focused connected bitcoin accumulation and preferred equity amplification.

Strive CEO Matt Cole described the strategy arsenic “execution with Bitcoin arsenic your hurdle rate.”

The Strive committee approved a 1-for-20 reverse banal divided for Class A and Class B communal banal successful conjunction with the merger closing. Chief Investment Officer Ben Werkman stated the determination aligns the stock terms with organization information standards to unfastened the banal to a wider beingness of investors.

Strive plans to absorption its superior operation connected preferred equity alternatively than debt. The institution cited implicit $100 cardinal successful inbound request for its preferred equity pursuing a caller offering that was oversubscribed twice.

Eric Semler, enforcement president of Semler, volition articulation the Strive Board of Directors.

Header photograph by Lance Grandahl via Unsplash.