The world of Digital Asset Treasury (DATS) has entered a new era, after Strive (ASST) announced this week an All-Stock agreement to acquire Semler Scientific (SMLR).
The agreement marked the first merger of two Bitcoin vouchers listed in Bitcoin, and according to a banker of Wall Street familiar with the situation, it is only the beginning of a wave of massive consolidation among the date.
The banker, who has chosen to remain anonymous, described three scenarios on how dat can evolve.
Mergers to add more BTC
The first of the three paths is the dat-to-dat mergers.
The acquisition by Strive to Semler is the first clear example of unification of BTC assets, stimulation by bitcoin action and governance establishment under one roof, said the banker.
At the end, the agreement will create a new company which will hold nearly 11,000 BTC after the simultaneous purchase of $ 675 million in 5,885 pieces.
It should be noted that the actions of Semler had negotiated below the value of its bitcoin, effectively attributing the negative value to its activity of medical devices. For Strive, the acquisition consolidates the balance sheets, adds the BTC scale and advances a key measure of the company: Bitcoin by action.
“The announcement of Strive’s merger is an increase in Bitcoin by action, achieving our short -term goal,” wrote CEO Matt Cole on X.
“We believe that the combined power of entities will give the company combined more capacity to access the capital markets in a manner which will stimulate an increase in bitcoin by action and accretion in a way that one or the other could not do by themselves.”
The Bitcoin treasure market being saturated with many listed companies on the stock market, this strategy is probably one of the most effective ways to grow for the DAT.
The Angle of cash flow
The banker said that the second path of development is to acquire cash flow companies to compensate for dilution and finance current BTC purchases.
Metaplanet, the largest Bitcoin holder in Japan, has already said that he would use his treasure to buy cash generating companies as part of his “phase two” strategy.
Metaplanet also explores the use of perpetual privileged stocks, a financing strategy that the strategy (MSTR) has already used, which allows it to buy Bitcoin without diluting shareholders through ordinary stock offers to the market (ATM).
More spaches
Third, the merger with legitimate companies instead of using special acquisition companies (SPAC), according to the banker.
Spaces are shell companies designed to make public enterprises quickly, but the “DEPAC” process can be disorderly, demanding shareholders’ votes, regulatory deposits and often suffering from investor buyouts. Make it more complex, to fill the financing gaps, many spaces are based on pipes (private investments in public equity), which provide dilution, discounts and uncertainty.
For Dats, the merger directly with a company that already has operations and governance avoids these traps.
Evolution of data
The main thing is that the date are at a point where they must evolve and be creative with their growth strategies.
In fact, other companies are already accompanied by this trend. Recently, FRNT Financial (TSXV: FRNT), a digital asset investment bank, said it had concluded a consulting agreement with an unhappy date with $ 100 million in digital assets in its balance sheet.
Depending on the conditions of the agreement, FRNT will help to assess and structure loan possibilities for the next growth phase of the company.
Transactions, such as the merger of Strve-Semler, show that the cash companies of digital assets must evolve by consolidation, buy profitable companies or align with established operators which bring legitimacy, inaugurating the next phase of the evolution of dats.
Read more: Semler Scientific still has almost 170% up after the Strive buyout agreement: Benchmark
