In a groundbreaking move signaling a shift in the digital asset treasury (DAT) landscape, Strive has announced its plans to acquire Semler Scientific in an all-stock deal. This merger represents a pivotal moment as it marks the first time two publicly traded bitcoin treasuries have decided to combine forces. According to a Wall Street banker closely tied to the deal, the Strive-Semler merger is just the beginning of a larger consolidation trend within the DAT sector.
Mergers to Add More BTC
The merger between Strive and Semler is a textbook example of how DATs are aiming to streamline and strengthen their bitcoin holdings. With the new entity set to hold nearly 11,000 BTC, following Strive’s purchase of an additional 5,885 coins worth $675 million, the merger is designed to boost bitcoin per share and unify governance structures. Semler Scientific’s shares had, until now, been trading below the value of its bitcoin holdings, effectively undervaluing its medical device business. For Strive, this acquisition not only consolidates balance sheets but also increases its BTC scale, pushing forward a crucial company metric.
Matt Cole, Strive’s CEO, expressed optimism on X, stating, “Strive’s merger announcement is accretive in bitcoin per share, meeting our short-term goal. We believe the combined power of the entities will give the combined company more ability to access the capital markets in a way that will drive increased bitcoin per share and accretion in a way neither could do on their own.”
With the bitcoin treasury market becoming increasingly saturated, this merger strategy could be one of the most efficient ways for DATs to grow. Consolidating BTC holdings under one roof not only streamlines operations but also enhances investor confidence by simplifying governance and boosting bitcoin per share.
The Cash-Flow Angle
Another path forward for DATs, as highlighted by the Wall Street banker, is to acquire cash-flowing businesses to counteract dilution and support ongoing BTC acquisitions. Japan’s largest bitcoin holder, Metaplanet, has already announced plans to use its treasury to purchase cash-generating businesses as part of its “phase two” growth strategy. By leveraging perpetual preferred stock, similar to the approach taken by Strategy (MSTR), Metaplanet aims to fund its bitcoin purchases without diluting shareholders through at-the-market common stock offerings.
This approach not only stabilizes cash flow but also positions DATs to capitalize on profitable ventures outside the volatile cryptocurrency market. It’s a strategic move to ensure sustainable growth and minimize risks associated with bitcoin’s price fluctuations.
No More SPACs
The third evolutionary path for DATs involves merging with established businesses rather than resorting to special-purpose acquisition companies (SPACs). SPACs, while designed to expedite the process of taking companies public, often come with a host of complications. The “de-SPAC” process can be cumbersome, involving shareholder votes, regulatory filings, and frequently facing investor redemptions. Furthermore, SPACs often rely on private investments in public equity (PIPEs) to bridge funding gaps, which can lead to dilution, discounts, and uncertainty.
By merging directly with operational companies that already possess governance structures, DATs can bypass these pitfalls, ensuring smoother transitions and more stable growth trajectories. This strategy not only avoids the complexities associated with SPACs but also aligns DATs with legitimate businesses that can enhance their credibility and market standing.
The Evolution of DATs
As digital asset treasury companies navigate this transformative period, it’s clear they must adapt and innovate to thrive in an increasingly competitive market. The Strive-Semler merger is just one of many examples where DATs are seeking to scale through consolidation, acquire profitable businesses, or partner with established operators to bring legitimacy.
Other companies are also catching on to this trend. Recently, FRNT Financial, a digital asset investment bank, announced a consulting agreement with an undisclosed DAT holding $100 million worth of digital assets. Under the terms of the deal, FRNT will assist in evaluating and structuring lending opportunities for the company’s next growth phase.
These developments underscore the need for DATs to evolve and explore creative growth strategies. Whether through mergers, acquisitions of cash-flowing businesses, or strategic partnerships, digital asset treasury companies are poised to usher in the next phase of their evolution, ensuring they remain competitive and relevant in the fast-evolving cryptocurrency landscape.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
