The digital asset treasure world (DATS) has entered a new era, after STRive (ASSST) announced an agreement of the entire stock to acquire Semler Scientific (SMLR) this week.
The agreement marked the first fusion of two Bitcoin Treasury bonds that are negotiated publicly, and according to a Wall Street banker familiar with the situation, this is only the beginning of a wave of mass consolidation between the DATs.
The banker, who chose to remain anonymous, described three scenarios on how DATs can evolve.
Mergers to add more BTC
The first of the three routes are Dat-To-Dat mergers.
Semler’s acquisition by Stive is the first clear example of unifying BTC holdings, promoting Bitcoin per action and establishing the government under the same roof, said the banker.
When closing, the agreement will create a new company that will have almost 11,000 BTC after the simultaneous purchase of $ 675 million from 5,885 coins.
It is worth noting that Semler’s actions had been operating below the value of their Bitcoin, effectively assigning negative value to their medical device business. For Stive, the acquisition consolidates Balances, adds the BTC scale and promotes a key metric of the company: Bitcoin per action.
“Strive’s fusion announcement is accumulated in Bitcoin per action, fulfilling our short -term goal,” wrote the Matt Cole CEO in X.
“We believe that the combined power of the entities will give the combined company more capacity to access capital markets in a way that will boost a bitcoin increase per action and the accumulation in one way that neither of them could do it on their own.”
Since the Bitcoin Treasury market is saturated with many companies that are quoted in the stock market, this strategy is likely to be one of the most efficient ways to grow for DAT.
The cash flow angle
The banker said that the second path of evolution is to acquire companies that flow in cash to compensate for dilution and finance the ongoing purchases of BTC.
Metaplenet, the largest Bitcoin holder in Japan, has already said that he will use his treasure to buy cash generating businesses as part of his “Phase Dos” strategy.
Metaplenet is also exploring the use of preferred perpetual actions, a financing strategy that has already used the strategy (MSTR), which allows you to buy Bitcoin without diluting shareholders through offers of common shares in the market (ATM).
No more spaces
Third, it is merging with legitimate businesses instead of using special use companies (SPAC), according to the banker.
SPAC are Shell companies designed to bring public companies quickly, but the “DES-SP” process can be disorderly, which requires shareholders ‘votes, regulatory presentations and, often, suffer investors’ reimbursements. Do the most complex things, to close the financing gaps, many spaces depend on the pipes (private investments in public equity), which bring dilution, discounts and uncertainty.
For Dats, merging directly with a company that already has operations and governance avoids these difficulties.
DATS evolution
The conclusion is that DATs are at a point where they need to evolve and be creative with their growth strategies.
In fact, other companies are already realizing this trend. Recently, Frnt Financial (TSXV: FRNT), an investment bank of digital assets, said it has signed a consulting agreement with an unleasized day with digital assets worth $ 100 million in its general balance.
According to the terms of the agreement, FRNT will help evaluate and structure loan opportunities for the company’s next growth phase.
The agreements, such as the Strive-Semler fusion, show digital assets treasury companies should climb through consolidation, buy profitable businesses or align with established operators that provide legitimacy, marking the beginning of the next phase of the DATS evolution.
Read more: Semler Scientific still has almost 170% rise after the purchase fight: Benchmark
