Shares of biotech company Semler Scientific Inc. (NASDAQ:SMLR) are trading higher Monday after Bitcoin (CRYPTO: BTC) asset management company Strive Inc. (NASDAQ:STRV) announced plans to acquire the company.
What To Know: Strive entered into an agreement to acquire Semler Scientific in an all-stock deal. Under terms of the transaction, each common share of Semler Scientific will be exchanged for 21.05 Class A common shares of Strive.
Shares of Semler Scientific jumped following the announcement. Strive shares were trading lower by about 6.75% at the time of writing, according to Benzinga Pro.
The acquisition will create a combined Bitcoin treasury company with over 10,900 Bitcoin. Strive also announced the purchase of 5,886 additional Bitcoin for approximately $675 million.
The company noted that it will explore the monetization or distribution of Semler Scientific’s historically profitable diagnostics business at a future date, with a new management team and expanded mandate in preventative diagnostics.
Semler Scientific’s executive chairman Eric Semler will join Strive’s board, which will otherwise remain the same. The combined company aims to become the fastest growing corporate Bitcoin holder using a “preferred equity only” leverage model.
“We believe this merger creates significant value for our stockholders by delivering a substantial premium and direct participation in one of the most innovative Bitcoin strategies in the public markets,” Semler said.
“This merger can drive shareholder value by expanding our medical diagnostics business into a robust preventative care and wellness platform focused on early detection of chronic disease. This dual-pronged strategy fuels both financial strength and mission-driven growth opportunities for our stakeholders.”
SMLR Price Action: Semler Scientific shares were up 3.31% at $30.15 at the time of publication Monday, according to Benzinga Pro.
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