Shares of Semler Scientific (Smlr) Closed to $ 32.06, well under the implied $ 86.30 takeout value in its advertised acquisition of all-stock by striving (Asst)A discount -benchmark -analyst Mark Palmers says, reflects both skepticism and opportunities in the new Bitcoin Treasury M&A wave.
Palmer repeated his purchase rating at Semler while trimming his price target on the stock to $ 86 from $ 101 to reflect the conditions in Strive Deal.
The fixed exchange ratio, 21.05 Strive shares per Semler Share, suggests a lucrative arbitrage scatter for investors, especially with both boards approving the agreement. Palmer said the market may be underestimating the long-term consequences of consolidating Bitcoin-Tung Balance under the roof of a single company.
The pursuit, which recently revealed that it contains 5,886 Bitcoin, would add Semler’s 5,021 BTC to a combined 10,907 -tokens, enough to rank twelfth among public companies that have cryptocurrency, drawing only strategy, noting the report.
It is important that the merger gives the pursuit not only scale in cryptor reserves, but also ownership of Semler’s diagnostic business, which it intends to make money or spin off after the agreement closes, Palmer said. This cash-flowing asset base can give the pursuit more flexibility than pure Bitcoin Treasury act.
The transaction marks the first major feature of what Benchmark thinks will be a wider wave of warehouse-for-stock Bitcoin Treasury mergers. By utilizing its own equity, it seems that Strive seems to catch BTC at favorable prices using a “preferred reliant gearing model”, which typically avoids maturity and marginal risks associated with debt-based strategies.
However, there are still risks. The trade depends on an effective S-4 registration and Semler Affairs Authorization. Any sharp fall in the pursuit or Bitcoin award before the vote could press terms of contract. “If Strive’s share price is significantly weakened in the vote, the implied value of the SMLR falls, possibly inviting recovery pressure or expansion of the ARB hair cut,” the report added.
SMLR shares are higher with 2.5% Premarket for $ 32.86. ASST is lower by 4.9% to $ 3.90.
Read more: Bitcoin Treasury Firm Semler Scientific still has 3x upward: Benchmark
