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Payward Acquires Magic Labs Embedded Wallet Business
Payward Acquires Magic Labs Embedded Wallet Business

Transaction Overview
On July 27, 2026, Payward, the B2B crypto infrastructure parent behind the crypto exchange Kraken, announced a definitive agreement to acquire wallet-as-a-service business Magic Labs. Financial terms of the transaction were not disclosed.

Target: Magic Labs (Wallet Infrastructure)
Founded in 2018 and headquartered in San Francisco, Magic Labs is a wallet-as-a-service infrastructure provider that enables businesses to create non-custodial embedded wallets for their end users. The company was co-founded by Sean Li, Arthur Jen, and Jaemin Jin.

Magic’s core offering is a developer-facing SDK and API that provides embedded wallets with passwordless authentication via email, social login, passkeys, or SSO. The product suite includes 1) API Wallets for server-side management with security and customizable key sharding, and 2) Embedded Wallets for client-side non-custodial key management. As of July 2026, the platform supports more than 30 blockchain networks and provides a white-label UI, fiat onramps, and transaction signing.

As of July 2026, Magic Labs had provisioned more than 60 million wallets and served more than 200,000 developers across more than 18,000 applications. Clients include Polymarket, Naver, Helium, Forbes, WalletConnect, Mattel, and Immutable. During the 2024 U.S. presidential election, Polymarket processed over $3 billion in prediction market transactions with zero downtime, powered by Magic’s embedded wallets. Magic said it had supported over $8.9 billion in cumulative transaction volume for Polymarket as of November 2025.

Magic Labs has raised a total of $83 million in disclosed venture funding across 4 rounds, with significant investors including PayPal Ventures, Northzone, Tiger Global, Digital Currency Group, CoinFund, and Placeholder VC.

In November 2024, Magic Labs announced Newton, a chain unification network built in collaboration with Polygon Labs, expanding beyond wallet infrastructure into cross-chain protocol development. In November 2025, Magic Labs integrated the Newton Protocol SDK across its developer network. The company described Newton Protocol as “the authorization layer for on-chain finance.” These moves preceded the company’s decision to divest its wallet business and refocus entirely on protocol development.

Buyer: Payward
Founded in 2011 and headquartered in San Francisco, Payward is a private B2B crypto infrastructure holding company. Payward operates Kraken, one of the longest-running cryptocurrency exchanges, alongside NinjaTrader, xStocks, Bitnomial, and CF Benchmarks. The company is led by co-CEOs Arjun Sethi and Dave Ripley.

Most relevant to this transaction, Payward operates Payward Services, a B2B infrastructure platform that provides institutions with access to Payward’s trading, custody, settlement, and payments infrastructure via API. The acquisition of Magic Labs adds embedded wallet infrastructure to their offering. In April 2026, Payward launched a white-label fiat-to-crypto onramp through a partnership with Onramper, making embedded wallet infrastructure a natural adjacent capability.

Payward has been expanding beyond its core exchange through acquisition. In 2025, the company acquired NinjaTrader for $1.5 billion (retail futures, M&A Alert) and agreed to acquire Backed Finance (tokenized equities, Press). In 2026, it acquired Magna (token lifecycle management, Press), completed the acquisition of Bitnomial for up to $550 million (regulated derivatives, M&A Alert), and agreed to acquire Reap for $600 million (card issuance and payments, M&A Alert). Including this transaction, Payward has announced or completed 8 acquisitions since early 2025, committing several billion dollars to platform expansion ahead of its planned public listing.

For the full year of 2025, Payward reported adjusted revenue of $2.2 billion, a 33% increase year over year from $1.5 billion in 2024. Trading-based revenue accounted for 47% of the total, with the remaining 53% from asset-based services, including payments, custody, yield, and financing.

In November 2025, Payward raised $800 million at a $20 billion post-money valuation in a round backed by Citadel Securities, Jane Street, and Apollo Global Management, and confidentially filed an S-1 with the SEC ahead of a planned IPO. In April 2026, Deutsche Börse Group made an additional $200 million strategic investment in the company.

Transaction Parameters
Payward has signed a definitive agreement to acquire the wallet-as-a-service business of Magic Labs for an undisclosed amount. The transaction includes Magic Labs’ embedded wallet business, including wallet clients and associated infrastructure.

The transaction is part of a broader corporate restructuring in which Magic Labs is rebranding as Newton Labs to focus on the Newton Protocol. The two companies will remain independent following the close.

Architect Partners served as the exclusive financial advisor to Magic Labs.

Strategic Rationale
Payward is acquiring Magic’s embedded wallet business to augment Payward Services’ B2B offering. Payward Services gives partners a single integration point for trading, custody, tokenized assets, on/off-ramps, and derivatives. The wallet, the account layer where end users actually hold assets and interact with onchain products, was a critical piece partners still had to source from a third party. Magic brings that layer in-house with proven infrastructure: a TEE-based signing solution, an embedded integration layer, and a developer SDK that together have provisioned more than 60 million wallets and supported over $10 billion in stablecoin volume for 200,000+ developers.

On Day 1, Payward can offer fintechs, enterprises, and financial institutions a complete embedded onchain offering under a single provider, spanning wallet provisioning, onboarding, funding, trading, custody, and settlement, without stitching together multiple vendors. Every embedded wallet also becomes a distribution point that routes transaction volume into the rest of Payward’s infrastructure, deepening the non-trading, less volatile revenue that already accounts for 53% of Payward’s total as it heads toward a public listing.

Architect Partners’ Observations
This transaction marks the near-completion of a consolidation wave in embedded wallet infrastructure. In roughly one year, Fireblocks acquired Dynamics ($90M), Consensys acquired Web3Auth ($50M), Stripe acquired Privvy, Ripple acquired Palisade, and Paxos acquired Fordefi. Now each group has its own independent wallet infrastructure provider, and Payward has acquired the category’s pioneer. The market has reached a clear verdict: embedded wallets are foundational infrastructure for every onchain product, and they are a layer of a full-stack platform rather than a standalone business.

The logic is simple: the wallet is becoming the account primitive of onchain finance. Whoever provisions the wallet sits at the front of the customer relationship and routes the volume that follows. For platforms whose trading revenue is inherently cyclical, owning the onboarding layer converts market position into durable, recurring B2B infrastructure revenue.

Sources
Press Release, Payward Services, PitchBook

Alerts

Strive acquires Semler Scientific for $1.42B in all-stock transaction

Steve Payne
September 28th, 2025
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Transaction Overview

On September 22nd, 2025, Strive, a newly emerged bitcoin treasury company and asset manager, announced the acquisition of Semler Scientific, a bitcoin treasury and medical risk assessment services provider, for an equity purchase price of $1.34B and an enterprise value of $1.42B, reflecting a 210% premium to Semler’s Friday September 19 closing price.

 

Target: Semler Scientific

Semler Scientific (Nasdaq: SMLR) is a U.S. crypto-treasury and medical diagnostics company based in Campbell, California. Founded in 2007, it initially focused on medical risk assessment, providing screening programs with peripheral artery disease (PAD) testing, and primarily serving U.S. health insurers, integrated delivery networks and other at-risk providers, independent physician groups, and hospitals. Semler announced its Bitcoin-treasury strategy in May 2024 while continuing to operate its medical services division.

 

Since May 2024, Semler has announced three crypto-treasury financings, including two at-the-market (ATM) programs and one convertible note issuance, totaling $416.1 million. Its Q2 results indicated $84.0 million in Bitcoin gains year-to-date and a 31.3% BTC yield. As of the announcement date, its Bitcoin treasury held 5,021 BTC, valued at approximately $567 million at then market prices on a $476 million cost basis, ranking as the 20th-largest corporate Bitcoin holder.

 

The medical diagnostics division has experienced declining revenue since the prior fiscal year. For FY2024, Semler reported non-Bitcoin revenue of $56.3 million, down 18% year over year. First-half FY2025 revenue was $17.1 million, a 44% decline year over year. Semler has continued to invest in the medical division, including forming CardioVanta in 2025 to pursue early detection of heart failure.

 

Buyer: Strive

Strive (Nasdaq: ASST) is a Dallas-based Bitcoin treasury and asset management company. Founded in 2022, Strive initially focused on asset management and had grown to more than $2.0B AUM across 13 ETFs covering index, energy, thematic, and fixed income strategies by the end of 2024. In May 2025, Strive announced its crypto treasury strategy in parallel with a reverse-merger with Asset Entities, to “create the first publicly listed asset management plus bitcoin treasury company”. Strive became publicly listed on Sep 12, 2025.

 

Since May 2025, Strive has announced three Bitcoin treasury capital initiatives: a $750 million PIPE (with up to an additional $750 million possible via warrant exercises), a $450 million at-the-market (ATM) program, and an intended perpetual preferred equity issuance. 

 

As of the Sept. 22, 2025 announcement, Strive reported 5,886 BTC in its treasury (valued ~$665M at that time). On most public trackers, that level places Strive around the upper-teens among corporate Bitcoin holders; post-merger with Semler, the combined ~10,900 BTC would rank at number 12.

 

Transaction Parameters

Strive is acquiring 100% of Semler Scientific in an all-stock deal valued at about $1.34 billion in equity value. Each SMLR share will be exchanged for 21.05 Strive Class A shares, implying $90.52 per SMLR share, which is about a 210% premium to the prior close. Concurrent with signing, Strive has purchased 5,816 BTC for $675 million (avg. ~$116,047 / BTC), and the combined company will hold over 10,900 BTC. 

 

Post-merger, Strive intends to explore monetizing or distributing Semler’s diagnostics (healthcare) business, which if applying a median multiple of 5x revenue for traditional HealthTech transactions, could involve the gain of ~$215M upon distribution.

 

Strategic Rationale

This transaction combines two of the largest BTC treasury strategies, allowing the combined asset to collectively increase bitcoin per share and thus drive equity value accretion. Furthermore, by combining in an all-equity transaction, Strive is able to avoid any maturity or interest risk from debt-raising.

 

Architect Partners’ Observations

We have been watching and advising digital asset treasury (DAT) companies for months, and Architect data has often been referenced in news articles analyzing this trend. We have noted that the treasury strategy, pioneered by Michael Saylor at Strategy, was easy to copy, and indeed now we track over 200 public players. We have also noted that large premiums to net asset value (mNAV) were unsustainable, and mNAVs have narrowed significantly the past two months. As Matt Levine at Bloomberg has written, consolidation is logical, and this transaction appears to be the first stock-for-stock merger.

 

Two other items are unusual in this case. As mentioned, Semler was trading at a market cap of about $432M (EV of $532M assuming about $100M in debt). This actually reflected a discount to NAV, with an 0.8 mNAV. The value of Semlers’ 5021 BTC was about $567M at last week’s $113k per BTC price.  Semler could have paid off the debt and returned roughly $32 per share, versus last Friday’s closing price of $29.18.

 

But instead Semler accepted an implied price per share of $90.52 per share in Strive shares, a whopping premium of 210% to their last closing price.

 

So how does this make sense for Strive? If the ultimate goal for DAT companies is to increase BTC per share, Strive could have attempted to acquire BTC in the spot market. However, with warrant proceeds effectively inaccessible, an at-the-market offering that would have been punitive at a 3.8x mNAV premium, and preferred stock or debt being slower and riskier against volatile collateral, the most capital-efficient move was to swap premium-valued stock for cheaper NAV. Semler traded near 0.8x mNAV and held materially more BTC per share, so a stock deal was immediately accretive on that metric.

 

This story is not complete yet. Mark Palmer from Benchmark noted on Tuesday that post-announcement, Semler shares only rose to $32, versus an updated acquisition price of $86 (Strive shares dropped about 5% post-announcement). And today, SMLR closed at $28, even below last Friday’s price. This wide spread indicates an unusual amount of skepticism that this transaction will close on announced terms.

 

Sources 

PitchBook, Globe Newswire, PR Newswire, SEC, Architect Partners Insights.