Strive, Semler Stocks Fall After Shareholders Approve Bitcoin Treasury Acquisition

Shares of Semler Scientific (SMLR) and Strive Asset Management experienced significant declines during Tuesday trading, plummeting 15% and 12% respectively, just hours after shareholders formally approved the controversial policy shift to adopt Bitcoin as a primary treasury asset. The decision transforms both companies, traditionally rooted in finance and medical devices, into corporate holders of digital currency, a move that appears to have triggered immediate investor skepticism regarding risk exposure.

Semler, known primarily for its proprietary cardiovascular testing equipment, and Strive, an emergent asset manager focused on conservative investment principles, both announced weeks ago their intention to allocate substantial portions of their cash reserves—and potentially raise further capital through convertible debt—to acquire and hold Bitcoin. Proponents of the strategy, including management teams, argued that Bitcoin serves as an effective hedge against inflation and dollar devaluation, viewing the cryptocurrency as a superior long-term store of value compared to traditional cash equivalents.

However, the market reacted negatively to the confirmation of the acquisition plans. Analysts cite three primary reasons for the sell-off: increased corporate volatility, uncertainty surrounding the accounting treatment of digital assets, and concerns that management attention may be diverted from core business operations to managing a volatile treasury portfolio. Furthermore, the sheer size of the planned acquisition—estimated to be over $150 million combined across both entities in the initial phase—appears to have spooked risk-averse institutional investors who prefer stable balance sheets.

While spokespersons for both companies reaffirmed their confidence in the strategic long-term value of the Bitcoin allocation, emphasizing that the move positions them for future growth, the immediate market verdict was clear: shareholders are demanding a risk premium for exposure to digital asset volatility, leading to the substantial drop in valuation immediately following the vote.

Source: Strive, Semler Stocks Fall After Shareholders Approve Bitcoin Treasury Acquisition