2 hours ago
Shares of Semler Scientific (SMLR) closed astatine $32.06, good beneath the implied $86.30 takeout worth successful its announced all-stock acquisition by Strive (ASST), a discount Benchmark expert Mark Palmers accidental reflects some skepticism and accidental successful the emerging bitcoin treasury M&A wave.
Palmer reiterated its bargain standing connected Semler portion trimming his terms people connected the banal to $86 from $101 to bespeak the presumption of the Strive deal.
The fixed speech ratio, 21.05 Strive shares per Semler share, suggests a lucrative arbitrage dispersed for investors, particularly with some boards having approved the deal. Palmer said the marketplace whitethorn beryllium underestimating the semipermanent implications of consolidating bitcoin-heavy equilibrium sheets nether a azygous firm roof.
Strive, which precocious disclosed it holds 5,886 bitcoin, would adhd Semler’s 5,021 BTC for a combined 10,907 tokens, capable to fertile twelfth among nationalist companies holding the cryptocurrency, trailing lone Strategy, the study noted.
Importantly, the merger gives Strive not lone standard successful crypto reserves but besides ownership of Semler’s diagnostics business, which it intends to monetize oregon rotation disconnected aft the woody closes, Palmer said. That cash-flowing plus basal whitethorn springiness Strive much flexibility than axenic bitcoin treasury plays.
The transaction marks the archetypal large determination successful what Benchmark believes volition go a broader question of stock-for-stock bitcoin treasury mergers. By leveraging its ain equity, Strive appears to beryllium capturing BTC astatine favorable prices, utilizing a "preferred-equity-only leverage model" that avoids emblematic maturity and borderline risks associated with debt-based strategies.
However, risks remain. The woody depends connected an effectual S-4 registration and Semler shareholder approval. Any crisp diminution successful Strive oregon the bitcoin terms earlier the ballot could unit woody terms. "If Strive’s stock terms weakens materially into the vote, the implied worth to SMLR drops, perchance inviting renegotiation unit oregon widening the arb haircut," the study added.
SMLR shares are higher by 2.5% premarket to $32.86. ASST is little by 4.9% to $3.90.
Read more: Bitcoin Treasury Firm Semler Scientific Still Has 3X Upside: Benchmark
English (US) 