Strive: Strategic Expansion Meets Bitcoin Tailwinds -- Set For A Solid 2025 Finish

Summary Strive Asset Management, LLC is acquiring Semler Scientific, boosting its Bitcoin holdings to 10,900 coins and becoming a top-12 BTC treasury ￰0￱ all-stock deal offers a 210% premium to SMLR shareholders and creates a combined entity with $1.25 billion in Bitcoin at current ￰1￱ trades at a 24% discount to its pro forma Bitcoin holdings, supporting a bullish outlook and a 12-month price target of $1.70 (23% upside). Favorable Bitcoin seasonality, demographic tailwinds, pro-crypto policy, and Fed easing create a supportive environment for ASST's long-term ￰2￱ Asset Management, LLC (NASDAQ: ASST ) is a Bitcoin-focused asset manager whose core objective is to increase its Bitcoin (BTC-USD) holdings per ￰3￱ September 22, the company announced the acquisition of a Bitcoin treasury company, Semler Scientific (NASDAQ: SMLR ), underscoring a bold shift in its Bitcoin treasury ￰4￱ combined company would hold roughly 10,900 in Bitcoin ￰5￱ would make the company the 12th-largest publicly listed Bitcoin treasury company in the ￰6￱ BTC seasonality in play, favorable demographic headwinds, and a pro-crypto administration, this could spark an end-of-year rally for the company.

I think Strive Asset Management may offer an interesting opportunity for long-term investors who seek crypto exposure via equity markets. I believe Strive Asset Management is a Buy with a $1.75 price target over the next 12 months, reflecting a 14% upside ￰7￱ The Curtains: Strive And Semler Deal As advised above, Strive announced a major shift in its Bitcoin treasury strategy by acquiring a fellow BTC HODL ￰8￱ highlights an all-stock transaction, which, under the agreement, exchanges each Semler share for 21.05 Class A shares of ￰9￱ represents roughly a 210% premium, and an implied value of about $90.52 per Semler ￰10￱ on this deal, Strive would acquire 5,816 Bitcoin at an average price of about $116,000, significantly increasing its crypto holdings by nearly $675 ￰11￱ combined entity would have about 10,900 coins under treasury, which at the current price of Bitcoin at $115,000 would be equal to $1.25 billion.

Strive's marks an October 27 intraday market capitalization of roughly $950 million , reflecting a significant gap versus its future ￰12￱ highlights a 24% discount between the market cap and the value of the merged entities' ￰13￱ the deal materializes, the gap is likely to narrow, which supports my bullish stance and positive future ￰14￱ Seasonality May Still Be In Play, And That Could Spark An End-Of-The-Year Rally The last three quarters of the year have historically been a bullish period for ￰15￱ the table below indicates, the crypto asset experienced roughly 79% returns on average, and nearly 48% on a median ￰16￱ far, Bitcoin has appreciated by only 1% this quarter, yet I argue that Bitcoin seasonality may remain in place, and that could spark an end-of-the-year rally.

ASST: Bitcoin Seasonality (Coinglass. com) With an estimated Bitcoin holdings of nearly 11,000, ASST would be only the 12th largest BTC holder in the ￰17￱ suggests that Bitcoin treasury companies are significantly impactful for the cryptocurrency environment, and this supports a bullish stance for the ￰18￱ are companies, such as Strategy ( MSTR ), that are constantly acquiring coins and thereby provide a floor price for the ￰19￱ more companies applying a HODL strategy, Bitcoin may become a less volatile asset, which may appear more compelling to more conservative investors. Nevertheless, the following article suggests that Bitcoin experiences a significant demographic tailwind, which should act positively in the years ￰20￱ suggests that Gen Z is more likely to have crypto assets than a 401(k), and I argue the trend may ￰21￱ time passes, Gen Z will become a more experienced workforce, which should lead to a more prosperous stage of life with a higher ￰22￱ could result in more investments in the crypto landscape, potentially fueling Bitcoin ￰23￱ current administration is pro-crypto, and that is another strong argument for cryptocurrency's positive momentum into the ￰24￱ instance, on July 18, ￰25￱ Trump signed the Genius Act , which establishes a legal framework for ￰26￱ is important, as a clearer framework builds a more favorable environment for ￰27￱ also significantly contributes to an easier adoption of digital assets.

Furthermore, the Fed is anticipated to reduce interest rates over the following meetings, which encourages a risk-on ￰28￱ is a favorable tailwind for the cryptocurrency landscape, supporting a bullish stance going into ￰29￱ October has been choppy so far, I think Bitcoin seasonality may remain in ￰30￱ it materializes, both crypto assets and equities to crypto exposure may experience significant upside over the following two ￰31￱ Stock May Mirror Favorable Bitcoin Performance Strive is not a typical stock that you could simply value with an earnings ￰32￱ is one of a few Bitcoin treasury pioneers whose performance follows Bitcoin ￰33￱ simplest way to assess whether the stock appears undervalued or overvalued is by comparing the market cap versus the current value of Bitcoin holdings.

I have highlighted that if the deal materializes, ASST appears to be trading at a significant discount versus its probable ￰34￱ assumes Bitcoin remains at $115,000, but how does the picture change with Bitcoin's volatility? If we assume Strive's market cap appears roughly $950 million, and the treasury company holds 10,900 BTC on its balance sheet , the price of the underlying may drop to about $92,000, which would equal an mNAV price of ￰35￱ seems to be a significant gap, making it a compelling opportunity. Nevertheless, if Bitcoin seasonality plays out, the stock appears to be well positioned to benefit from the appreciation in the ￰36￱ we assume that over the following two months, Bitcoin would increase by 10%, which would be only 4% above its recent all-time high, Bitcoin holdings would be worth about $1.37 billion, reflecting roughly a 40% difference from the current market ￰37￱ may be enough for the stock to reach my $1.75 price target.

However, this would be the second-worst positive quarter since the inception, with 2021 marking the net-worst with a roughly 5% ￰38￱ suggests that even with insignificant-to-Bitcoin's recent end-of-year rallies of 10%, the company may achieve my ￰39￱ more favorable tailwinds occur, it could also appear too ￰40￱ reflects an undervalued stance of the company's valuation, given its recent acquisition. ASST: Capital Structure (Seeking Alpha) On the upside, ASST is a low-leverage business with slightly more than $4 million in total ￰41￱ company has $12.62 million in cash and could pay its debt with ￰42￱ indicates that management has financial flexibility to use debt instruments if needed.

Overall, the difference between the underlying asset worth and the company's market capitalization is favorable for investors and underlines that the downside may be ￰43￱ Bitcoin seasonality plays out, the company may appreciate in price, as I think that the stock could mirror Bitcoin ￰44￱ will tell, but this appears to be an interesting diversification for long-term investors who may seek to diversify in Bitcoin treasury ￰45￱ Risks And Concerns There are risks and concerns tied to Strive Asset Management that could significantly impact the stock price performance in the short ￰46￱ highlighted, I think that the stock price may mirror Bitcoin ￰47￱ seasonality plays out, the stock could experience appreciation, but if sentiment significantly changes, the company could correct ￰48￱ it seems that tailwinds may overtake the headwinds, which could result in a bullish year-end, the broader stock market has rallied since the April lows without a substantial pullback, and may be due for a ￰49￱ this materializes, cryptocurrencies may correct, alongside equities with crypto ￰50￱ is a risk-on asset, indicating significant sensitivity to macroeconomic ￰51￱ instance, if the Fed decides to pause the easing cycle due to elevated inflation, the market may shift to risk-off, which could lead to ￰52￱ this, it may be difficult to stomach equities' volatility, too, and it may take time for investor confidence to ￰53￱ on my analysis, I have indicated that if the deal were to settle, the company would become the 12th-largest Bitcoin treasury ￰54￱ it may sound impressive, these companies are also competing for capital ￰55￱ many different alternatives to invest in, investors may favor other, possibly larger Bitcoin treasury companies that may offer a more substantial ￰56￱ is largely an issue because pure crypto treasury companies lack other business operations, which could give a competitive ￰57￱ may result in weaker-than-anticipated demand for stock, and it could continue trading below 1 ￰58￱ the last point, ASST is a fairly new company in the field, and it may take time for investor confidence to ￰59￱ may favor other, well-known companies, and that could limit the ￰60￱ the other hand, if none of the above were to materialize, the company appears to be well-positioned to benefit from crypto ￰61￱ currently trades below 1 mNAV, which may appear compelling for long-term investors seeking crypto exposure via equity markets.

Conclusion: Strive Asset Management Is A Buy I think ASST may be an interesting diversification opportunity for investors who favor the cryptocurrency ￰62￱ stock currently trades at an appealing level, indicating that upside may be limited if Bitcoin seasonality plays ￰63￱ crypto environment appears to be risk-on and has several tailwinds, fueling a positive ￰64￱ the other hand, Strive Asset Management is a fairly new company in the crypto field, and it may take time for investors to familiarize themselves with the ￰65￱ could weigh on the stock price, alongside tens of other publicly listed companies, following the Bitcoin treasury playbook, which investors may view as a more favorable investment alternative.

Nevertheless, I think that Strive Asset Management is a Buy with a $1.75 price target over the next 12 ￰66￱ is mainly driven due to undervalued valuation, highlighting mNAV below ￰67￱ Bitcoin seasonality plays out, the disconnect in valuation may narrow, which could result in my price target sooner, rather than later.