Semler Scientific Actions (SMLR) Closed to $ 32.06, well below the food value to carry $ 86.30 implicit in its announced acquisition of the entire stock by Strive (ASST)A discount reference analyst, Mark Palmers, reflects both skepticism and the opportunity in the emerging OLA of the Bitcoin Treasury.
Palmer reiterated his purchase rating in Semler while cutting his target price in the share at $ 86 from $ 101 to reflect the terms of the effort agreement.
The fixed exchange relationship, 21.05 strives for the shares by Semler, suggests a differential of lucrative arbitration for investors, especially with both joints approved the agreement. Palmer said the market may be underestimating the long-term implications of consolidating Bitcoin-Pesado balances under a single corporate roof.
Strive, who recently revealed that he has 5,886 Bitcoin, would add the 5,021 BTC of Semler for a combined tokens of 10,907, enough to qualify in twelfth among the public companies that support the cryptocurrency, following only one strategy, the report said.
It is important to note that the merger gives the scale not only in cryptography reserves, but also the property of the Semler’s diagnostic business, which intends to monetize or turn after the agreement closes, said Palmer. That asset base that flows in cash can give more flexibility to the works of Bitcoin’s pure treasury.
The transaction marks the first important movement in what Benchmark believes that it will become a broader wave of Bitcoin Bitcoin Treasury fuses. By taking advantage of its own equity, Strive seems to be capturing BTC at favorable prices, using a “preferred capital leverage model” that avoids the typical expiration and margin risks associated with debt -based strategies.
However, the risks remain. The agreement depends on an effective S-4 record and the approval of the Semler’s shareholders. Any acute decrease in Stive or the price of Bitcoin before the vote could press the terms. “If the price of Stive shares is materially weakened in the vote, the implicit value of SMLR falls, possibly inviting the renegotiation pressure or expanding the ARB haircut,” the report added.
SMLR shares are higher by 2.5% prior to $ 32.86. The ASST is lower by 4.9% at $ 3.90.
Read more: Bitcoin’s treasure firm, Semler Scientific, still has 3x upward: Benchmark
