In a significant uptick for the crypto industry, corporate treasury activities are on the rise as digital asset treasury companies (DATCOs) increase their cryptocurrency holdings. On September 22, the asset management firm Strive announced a substantial addition of 5,800 Bitcoin (BTC) to its treasury, reinforcing its long-term investment strategy in digital assets.
Strive, which trades under the ticker ASST, is making headlines not only for its Bitcoin acquisition but also for its intention to acquire Semler Scientific Inc. (NASDAQ: SMLR) in an all-stock transaction. Semler is a Bitcoin treasury company boasting a holding of over 5,021 BTC, valued at approximately $451 million. In this acquisition, Semler shareholders will be compensated with 21.04 shares of Strive’s Class A common stock for each Semler share they possess.
This merger marks a strategic effort by Strive to enhance its crypto portfolio and pave the way for a more prominent Nasdaq listing following its previous merger with Asset Entities. Following the acquisition announcement, Strive’s share price dropped nearly 9% to $3.93, while Semler’s stock saw a remarkable increase of 9.94%, reaching $32.08.
In the latest transactions, Strive also reported adding an additional 5,816 BTC to its treasury, at an average acquisition price of $116,047 per coin. This recent purchase increases the total Bitcoin holdings of Strive to approximately 5,886 BTC, translating to roughly $664.5 million at current market rates.
Meanwhile, BitMine Immersion Technologies Inc. (NYSE AMERICAN: BMNR) has also made waves by exceeding 2% of the total circulating supply of Ethereum (ETH). With holdings surpassing 2.4 million ETH, BitMine’s expansion signifies a robust commitment to the Ethereum ecosystem. Additionally, the company holds 192 BTC and a $175 million stake in Eightco Holdings, bringing its total assets in cryptocurrencies and cash to approximately $11.4 billion.
BitMine has laid out an ambitious objective to achieve a 5% share of Ethereum’s circulating supply. Presently, ETH is trading at around $4,172, reflecting a 7% decrease for the day.
The surge in corporate treasury activities extends beyond Strive and BitMine. Amber Premium (NASDAQ: AMBR) has ventured into the DAT sector, unveiling a new consolidated platform that promises institutional clients an array of services, ranging from trading and custody to compliance and financing measures. Amber Premium’s focus is on publicly traded companies currently managing over $110 billion in Bitcoin across 179 firms.
Vicky Wang, President of Amber Premium, emphasized the convenience their platform provides by consolidating services under a single umbrella, enhancing compliance and security standards throughout the process. Following this announcement, Amber Premium’s stock rose by 9.14% to $4.30.
Additionally, plans are underway in the Asian market as Fragmetric Labs and DeFi Development Corp. (NASDAQ: DFDV) prepare to launch the first Solana-focused DAT in Korea through the acquisition of a currently undisclosed publicly listed Korean company. DeFi Development is known for its heavy investment in Solana, holding approximately 2,095,748 SOL, which equates to about $226.9 million. Just last week, the company added $15 million worth of SOL to its roster.
These developments underscore an increasing trend among corporations as they embrace cryptocurrencies as integral components of their financial strategies, marking a notable shift in the landscape as DATCOs broaden their asset portfolios and enter new markets.
