Strive buys Semler in $1.3bn all-stock deal as Bitcoin treasuries start to eat each other

Core Insights - The Bitcoin treasury trade is entering a consolidation phase as Strive announces its acquisition of Semler Scientific for over $1.3 billion, which will significantly increase its Bitcoin holdings [1][2] - Strive's CEO believes that merging with smaller firms will be essential for outperforming Bitcoin, as direct purchases are no longer yielding significant returns [2] - The trend of companies accumulating Bitcoin began with MicroStrategy in 2020, but many firms, including Semler, have struggled to see similar stock performance [3][4] Company Developments - Strive's acquisition of Semler will elevate the combined firm's Bitcoin holdings to nearly 11,000, positioning it just outside the top ten public Bitcoin holders [1][6] - Semler's stock has not performed well since its pivot to a Bitcoin treasury strategy, trading slightly above $30, which is only marginally higher than its initial announcement price [4] - The merger between KindlyMD and Nakamoto Holdings, which raised $540 million for Bitcoin purchases, indicates a broader trend of consolidation in the sector [5] Market Trends - Recent reports indicate that one in three Bitcoin treasuries have fallen below their Bitcoin value, suggesting a breakdown in the stock-for-Bitcoin model [6] - The consolidation of weaker firms may be necessary for stronger companies to maintain their market value and justify their stock premiums [6]