How DATs Are Transitioning from SPACs to Profitable, Cash-Flow-Focused Growth

Strive-Semler Merger Ushers in New Phase for Bitcoin Treasuries – 29/9/2025

Strive’s acquisition of Semler Scientific marks the first merger between two publicly traded Bitcoin treasuries, signaling a new wave of consolidation in the Digital Asset Treasury (DAT) sector and highlighting “Bitcoin per share” as a key performance metric.

The all-stock deal will create a combined entity holding nearly 11,000 BTC, following Strive’s $675 million purchase of 5,885 coins. Semler’s shares had been trading below the value of its Bitcoin holdings, effectively undervaluing its medical device operations. For Strive, the merger strengthens balance sheets, scales Bitcoin holdings, and drives growth in Bitcoin per share.

“Strive’s merger announcement is accretive in bitcoin per share, meeting our short-term goal,” CEO Matt Cole said on X. “Together, the companies will have stronger access to capital markets and can accelerate Bitcoin per share growth more effectively than either could alone.”

Three Paths for DAT Evolution

A Wall Street banker familiar with the deal outlined three strategies for how DATs may evolve:

1. DAT-to-DAT Mergers:
   The Strive-Semler deal is the first example of consolidating BTC holdings under unified governance. With many publicly traded treasuries now in the market, mergers offer an efficient way to scale.
2. Acquiring Cash-Flowing Businesses:
   Revenue-generating acquisitions can offset dilution and fund ongoing Bitcoin purchases. Japan’s Metaplanet, the country’s largest BTC holder, is pursuing a similar approach, using perpetual preferred stock—similar to Strategy (MSTR)—to buy BTC without diluting shareholders.
3. Moving Beyond SPACs:
   Direct mergers with operating companies avoid SPAC-related complexities, including regulatory filings, shareholder votes, and reliance on PIPE financing, while providing operational legitimacy and governance.

Looking Ahead

The sector is evolving beyond simple token accumulation. FRNT Financial, a digital asset investment bank, recently signed a consulting deal with an undisclosed DAT holding $100 million in digital assets to advise on lending and growth strategies.

The Strive-Semler merger underscores the next phase for DATs: scaling through consolidation, acquiring profitable businesses, or aligning with established operators. This shift marks a move toward strategic growth, operational legitimacy, and long-term value creation for publicly traded Bitcoin treasuries.