Strive Shares Plunge 12% After Bold Bitcoin Treasury Expansion Through Semler Deal

NEW YORK, May 2025 – Strive Asset Management’s stock experienced a sharp 12% decline on Tuesday following its announced acquisition of Semler Scientific, a strategic move designed to dramatically expand the company’s Bitcoin treasury holdings. This market reaction highlights the complex relationship between corporate cryptocurrency adoption and investor sentiment in the evolving digital asset landscape.

Strive Shares Fall After Major Bitcoin Treasury Expansion

The all-stock transaction received shareholder approval on Tuesday, adding Semler Scientific’s substantial Bitcoin reserves to Strive’s balance sheet. Consequently, Strive will incorporate Semler’s 5,048.1 BTC into its corporate treasury. Following this acquisition, Strive’s total Bitcoin holdings will increase significantly to 12,797.9 BTC. This substantial accumulation positions the company as the 11th largest publicly traded Bitcoin holding entity globally, according to data from BitcoinTreasuries.NET.

Furthermore, Strive disclosed an independent purchase of 123 additional Bitcoin for its corporate treasury. This separate acquisition raises Strive’s standalone holdings to 7,749.8 BTC. The company, co-founded by former presidential candidate Vivek Ramaswamy, plans to monetize Semler’s core operating business post-acquisition. Additionally, Strive intends to address existing financial obligations, including a $100 million convertible note and a $20 million loan from Coinbase, subject to favorable market conditions.

Corporate Cryptocurrency Strategy and Market Volatility

Public companies adopting digital assets on their balance sheets frequently experience volatile stock price reactions. Typically, shares rally sharply following treasury-strategy announcements before surrendering a substantial portion of those gains. This pattern has manifested clearly at Strive. After announcing its initial Bitcoin treasury strategy on May 7, the company’s stock surged remarkably from $0.61 to a peak of $13.01 on May 22, representing a gain exceeding 2,000%. However, the shares have since reversed course and currently trade at approximately $0.97.

Semler Scientific’s shares demonstrated a similar rise-and-retrace dynamic earlier. In late May 2024, the company announced board approval to adopt Bitcoin as its primary treasury reserve asset alongside the purchase of 581 BTC. Subsequently, shares climbed to $67.17 by December 9, rising from roughly $30 in early May. The stock now trades at about $20, reflecting the characteristic volatility of crypto-linked equities.

Global Patterns in Corporate Bitcoin Adoption

A related, though slower-moving, pattern unfolded with Metaplanet, a Japan-based hotel operator that now ranks as the world’s fourth-largest corporate Bitcoin holder with 35,102 BTC on its balance sheet. The company’s stock traded near $34 when Metaplanet announced its Bitcoin treasury strategy in April 2024. It later climbed to roughly $232 by July and reached a closing high of $1,781 on May 16, 2025. According to Yahoo Finance data, the stock has since retraced to around $528, yet remains substantially above pre-announcement levels.

This merger includes a 1-for-20 reverse stock split of the combined company’s Class A and Class B common shares. This corporate action will reduce the number of shares outstanding, potentially increasing the stock price per share while maintaining the same market capitalization. Reverse splits often aim to meet exchange listing requirements or improve perceived stock value, though they don’t fundamentally alter company valuation.

Strategic Implications of Treasury Diversification

Corporate Bitcoin adoption represents a significant shift in treasury management strategy. Traditionally, companies held cash, government bonds, or other low-risk assets. However, some firms now view Bitcoin as a potential hedge against inflation and currency devaluation. This strategic shift carries substantial risk due to Bitcoin’s price volatility, as evidenced by Strive’s recent stock performance.

The financial technology sector continues to evolve rapidly. Companies like Strive navigate complex regulatory environments while pursuing innovative treasury strategies. Market analysts closely monitor these developments, assessing whether cryptocurrency holdings will become standard corporate practice or remain a niche strategy for risk-tolerant firms.

Conclusion

Strive shares fell significantly following the company’s strategic acquisition of Semler Scientific to expand its Bitcoin treasury. This market reaction underscores the volatility associated with corporate cryptocurrency adoption. While Bitcoin treasury strategies can generate substantial short-term gains, they often lead to considerable price corrections. The long-term success of such strategies depends on Bitcoin’s price stability, regulatory developments, and broader market acceptance of digital assets as legitimate treasury reserves.

FAQs

Q1: Why did Strive’s stock price fall after acquiring more Bitcoin?
Strive’s stock declined 12% because investors often react cautiously to acquisitions involving volatile assets like Bitcoin. Additionally, the market may have concerns about integration costs and the strategic shift away from Semler’s core business.

Q2: How much Bitcoin will Strive own after the Semler acquisition?
Following the acquisition, Strive’s total Bitcoin holdings will reach 12,797.9 BTC, combining Semler’s 5,048.1 BTC with Strive’s existing treasury.

Q3: What ranking does this give Strive among public Bitcoin holders?
This acquisition positions Strive as the 11th largest publicly traded company in terms of Bitcoin treasury holdings globally, according to BitcoinTreasuries.NET data.

Q4: What happens to Semler Scientific’s original business?
Strive plans to monetize Semler’s operating business, meaning they will likely sell or spin off the non-Bitcoin related operations to focus on their asset management strategy.

Q5: How have other companies’ stocks performed after Bitcoin treasury announcements?
Other companies like Metaplanet and Semler Scientific itself have shown similar patterns: initial sharp price increases following Bitcoin adoption announcements, followed by significant retracements, though often remaining above pre-announcement levels.