Strive Surpasses Tesla with 12,800 Bitcoin – Why Are Investors Fleeing?

In a recent significant development, Strive, Inc. has successfully completed the last step needed for a major acquisition, as Semler Scientific shareholders voted in favor of an all-stock deal this week. Once finalized, this acquisition will transform Strive into a substantial player in the Bitcoin landscape. With the addition of Semler's 5,048.1 BTC, combined with its own recent purchases, Strive will amass a total of approximately 12,800 BTC. This move positions Strive ahead of Tesla and Trump Media, placing it in 11th position on the global corporate Bitcoin leaderboard.

Key Takeaways

Strive, Inc. has received shareholder approval for an all-stock acquisition of Semler Scientific, adding significant Bitcoin holdings.
After the merger, Strive will hold roughly 12,800 BTC, surpassing Tesla’s Bitcoin holdings.
CEO Matt Cole believes this acquisition will enhance Strive’s Bitcoin strategy and yield potential.
Despite the acquisition news, Strive's stock price dropped significantly, raising questions among equity investors.

Strive to acquire Semler

Strive's Ambitious Bitcoin Strategy

Strive's Chairman and CEO, Matt Cole, emphasized that this merger will bolster the company's Bitcoin strategy, focusing on enhancing yield generation. Cole anticipates that this acquisition will increase Strive's Bitcoin yield to over 15% by the first quarter of 2026. He expressed pride in the team's efforts, stating, “I’m proud of the execution the Strive team has delivered for our shareholders, making history towards completing the first acquisition of a publicly traded Bitcoin treasury company.” He further mentioned, “We are showing the market how to execute with Bitcoin as your hurdle rate.” The recent purchase of 123 BTC at an average cost of $91,561 each adds to Strive's impressive total of approximately 12,797.9 BTC.

Reasons Behind the Acquisition

According to the press release, Strive's management outlined a detailed 12-month plan aimed at monetizing Semler’s legacy healthcare endeavors and channeling those funds towards a necessary phase of deleveraging. Key priorities include settling Semler’s $100 million convertible note and a $20 million Bitcoin-backed loan from Coinbase. With these financial obligations removed, Strive intends to use preferred equity to broaden its Bitcoin exposure. This strategy differs from traditional debt by avoiding the risk of forced liquidation during price declines, allowing for a more stable growth of Bitcoin assets. The recent addition of 101.8 BTC to Strive’s balance sheet on January 4th marks the initial phase of this comprehensive Semler acquisition.

Market Reactions

Despite the positive news of the acquisition, Strive's stock (ASST) fell to a low of $0.90, eventually stabilizing around $0.97, reflecting an 11.82% drop. Similarly, Semler Scientific's stock (SMLR) experienced a nearly 10% decline, trading at $20.34 according to Google Finance. In contrast, Bitcoin bucked the bearish trend, gaining 3.55% over the past 24 hours and climbing back to around $95,036.57 based on CoinMarketCap data.

Conclusion

As Strive embarks on its journey as a major Bitcoin treasury company, the market's mixed reactions underscore concerns among equity investors. While the potential for growth in Strive's Bitcoin investments is significant, recent stock performance may raise alarms regarding market stability and investor confidence.