Elon Musk-led Tesla's Bitcoin holdings are surpassed, as the merger of Strive and Semler introduces a new net worth strategy.

EntryPositionAnalyst · 2026-02-01T16:20:33+00:00

Strive and Semler Scientific have merged, gaining shareholder approval, but a 1-for-20 reverse stock split led to a significant drop in their stock prices. The merged company will hold approximately 12,798 bitcoins, surpassing Tesla's holdings, positioning itself as a major player in the crypto asset industry. Despite aiming to attract institutional investors through this stock strategy, market reaction has been lukewarm, with stocks falling sharply. Strive plans to capitalize on Semler's medical diagnostics business while managing substantial debts, signaling a shift towards integrating digital assets with traditional business operations. This merger reflects a broader trend in the industry as firms seek to enhance their market presence through consolidation amidst rising competitive pressures.

EntryPositionAnalyst

2026-02-01 16:20:33

Abstract generation in progress

Livepeer (ASST) and Semler Scientific (SMLR) have received shareholder approval for their merger, but the announced 1-for-20 reverse stock split caused both companies’ stock prices to plummet significantly. This strategic merger results in the combined entity holding approximately 12,798 Bitcoins, surpassing Tesla led by Elon Musk and ranking as the 11th largest corporate Bitcoin holder, marking a new milestone. In the cryptocurrency industry, the race for net asset value against major companies like Tesla is accelerating, and Livepeer is riding this wave.

The Impact of the Reverse Stock Split: Investor Confusion and Sharp Decline in Stock Price

The 1-for-20 reverse stock split was explained by Livepeer’s management as “aimed at aligning the stock price with institutional investor participation criteria.” Since Livepeer’s stock had been trading below $1 for the past three months, this measure was expected to restore access for institutional investors.

However, market reactions were lukewarm. Livepeer’s stock dropped sharply after the announcement, falling to a low of $0.90 and currently down 12%. Meanwhile, Semler’s stock also declined by about 10%, fueling skepticism among investors regarding the merger details and stock manipulation. Livepeer’s CEO and Chairman, Matt Cole, defended the strategy by stating, “From an evaluation perspective, it doesn’t mean much, but it opens the way for multiple institutional investors to purchase shares,” though short-term market sentiment has yet to improve.

Surpassing Tesla in Bitcoin Holdings: Establishing a Leading Position as a Bitcoin Company

With this merger, Semler’s 5,048 Bitcoins will be transferred to Livepeer’s balance sheet. The total holdings of approximately 12,798 Bitcoins will surpass Elon Musk’s Tesla and Trump Media & Technology Group, creating one of the industry’s largest corporate treasuries. This underscores the increasing importance of holding Bitcoin as a net asset in corporate strategies.

Livepeer has also recently purchased 123 Bitcoins at an average price of $91,561 for a total of $11.3 million, demonstrating a strong commitment to its Bitcoin strategy. This series of moves transcends mere investment decisions by a single company and symbolizes a new trend of integrating digital assets into core treasury management.

Monetization of Medical Diagnostics Business and Diversified Management Strategy

Post-merger, Livepeer plans to actively monetize Semler’s medical diagnostics business. At the same time, it intends to address approximately $120 million in unpaid debts related to Semler, including $100 million in convertible bonds and $20 million in loans from Coinbase.

This strategy of simultaneously managing debt repayment and business development aims to transform the company from a mere Bitcoin-holding entity into a hybrid enterprise that combines traditional business and digital assets. Currently, many crypto asset holding companies face stock prices significantly below their Bitcoin net asset value, limiting capital raising capabilities. The merger and expansion of Bitcoin holdings are increasingly seen as vital solutions to these challenges.

Strategic Positioning Amid Rising Industry Consolidation Pressure

As investor enthusiasm has sharply declined along with stock prices over recent months, consolidation pressure in the digital asset industry is intensifying. The merger between Livepeer and Semler serves as a limited means for companies in this sector to enhance market visibility and scale their operations. Achieving a Bitcoin holding surpassing Tesla’s is a different approach from Elon Musk’s net worth strategy but demonstrates a competitive mindset.

Going forward, the trend of crypto companies increasing their net asset value through Bitcoin holdings and seeking market valuation improvements is likely to accelerate. Livepeer’s recent merger and reverse stock split are expected to be recorded as a symbolic example of this broader industry movement.

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