Vivek Ramaswamy-Backed Strive And Semler Stocks Rebound On Bitcoin Recovery After Reverse Split Shock

• Strive’s stock rose 2.2% after hours following a dip of over 11% in the regular session.
• Semler’s stock gained 1.5% in overnight trading after a fall of nearly 10% in regular hours.
• The gains followed a rally in Bitcoin’s (BTC) price to over $96,000. 

Shares of Vivek Ramaswamy-backed Strive (ASST) and its merger partner Semler Scientific (SMLR) recovered in overnight trade on Wednesday after an abrupt reverse stock split announcement rattled investors and sent both stocks tumbling during regular market hours.

ASST’s stock rose 2.2% in after-hours trading after a drop of over 11% in regular hours. Retail sentiment around the company remained in ‘extremely bullish’ territory despite the volatility, and retail chatter increased to ‘extremely high’ from ‘high’ levels over the past day. Platform data showed there was a 200% jump in message volume during that time.

Meanwhile, SMLR’s stock rose 1.5% in after-hours trade after a drop of nearly 10% in the regular session. It also saw retail sentiment trending in ‘extremely bullish’ territory, accompanied by ‘extremely high’ levels of chatter.

The gains followed a rally in Bitcoin’s (BTC) price to over $96,000. The cryptocurrency was trading at around $95,400 at the time of writing.

Surprise Reverse Stock Split

Strive shareholders approved the acquisition of Semler Scientific on Tuesday, but investors were not expecting the 1-to-20 reverse stock split announced alongside the deal.

Strive’s chief investment officer (CIO) Ben Werkman said the reverse split is intended to "align share price with institutional participation standards" and to increase access for more investors. The stock has mostly traded below $1 since October. A reverse stock split is usually done to avoid delisting and buy time for a turnaround.

The merger between the two companies is an all-stock transaction with Strive acquiring more than 5,000 of Semler’s Bitcoin. On completion of the Semler acquisition, the company will hold nearly 12,800 Bitcoin, which would put it ahead of Tesla (TSLA) and Trump Media & Technology Group (DJT) in terms of corporate Bitcoin reserves.

Read also: GPUS, SBET Lead Crypto Stocks Rally Following Bitcoin’s Surge To $96,000

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