Strive shares fall 12% after Semler deal to expand Bitcoin treasury

Strive Corp. experienced a significant downturn in trading today, with shares plummeting 12.3% following the announcement of a strategic acquisition and financing deal aimed at aggressively expanding its Bitcoin (BTC) treasury. The deal, which involves a partnership with Semler Strategic Assets, includes the issuance of $350 million in convertible senior notes to fund the immediate purchase of Bitcoin, marking a sharp pivot in Strive’s capital allocation strategy.

Market analysts suggest the steep sell-off is rooted in investor apprehension regarding the inherent volatility introduced by making BTC a core component of the balance sheet. Furthermore, the use of convertible notes introduces near-term dilution risks that many shareholders are reacting negatively to. Strive’s management defended the move, stating the expansion of digital assets is a necessary defense against fiat devaluation and a long-term value creation mechanism, mirroring strategies employed by firms like MicroStrategy.

However, investment banks expressed concern over the leverage being used to acquire a speculative asset, especially as Strive’s core business segments face macroeconomic headwinds. The decline underscores continued investor skepticism towards companies that prioritize cryptocurrency holdings over traditional business reinvestment and organic growth.

Source: Strive shares fall 12% after Semler deal to expand Bitcoin treasury