In a bold and strategic shift, Semler Scientific, a Nasdaq-listed medical device manufacturer, has made headlines with its aggressive foray into Bitcoin.
The company, known for developing technology products and services to combat chronic diseases, has recently expanded its bitcoin holdings significantly and plans to invest even more in the digital asset.
This move reflects a growing trend among public companies to adopt bitcoin as a primary treasury asset.
Semler Scientific first made waves in the financial world with its initial purchase of 581 bitcoin on May 28, valued at approximately $40 million at the time.
This substantial investment sent a strong signal to the market about the company’s confidence in bitcoin as a valuable and strategic asset. Following this purchase, Semler’s stock surged by 30%, highlighting the positive market reaction to the news.
Building on its initial investment, Semler Scientific recently acquired an additional 247 bitcoin for $17 million. This purchase brings the company’s total bitcoin holdings to 828 BTC, valued at around $59 million based on current market prices.
Doug Murphy-Chutorian, Semler Scientific’s CEO, emphasized the company’s commitment to its dual strategy, stating:
“Semler remains focused on our two strategies of expanding our healthcare business and acquiring and holding bitcoin […] We will continue to pursue our strategy of purchasing bitcoins with cash.”
To further support its bitcoin acquisition strategy, Semler Scientific has filed an S-3 form with the U.S. Securities and Exchange Commission (SEC) to raise $150 million through debt securities.
A portion of the funds raised will be used to purchase additional bitcoin. In its SEC filing, the company outlined its rationale for investing in bitcoin, describing it as a “reasonable inflation hedge and safe haven amid global instability.”
“We intend to use the net proceeds from the sale of any securities offered under this prospectus primarily for general corporate purposes, including the acquisition of bitcoin,” the firm noted.
Semler Scientific’s approach mirrors the strategy adopted by MicroStrategy, a data analytics firm that has famously invested heavily in bitcoin.
MicroStrategy’s aggressive bitcoin accumulation has positioned it as one of the largest holders of the the digital asset among public companies, with over 200,000 BTC in its treasury.
Semler’s move to follow a similar path underscores the growing acceptance of bitcoin as a legitimate and strategic asset by major corporations.
Notably, according to Bitcoin Treasuries, publicly traded companies collectively possess 308,442 BTC on their balance sheets, valued at around $21.8 billion.
While Semler’s initial bitcoin purchase boosted its stock price, the market reaction to subsequent purchases has been mixed.
After the announcement of the $17 million bitcoin acquisition, Semler’s stock fell by 2.5% to $29.13. This dip reflects the inherent volatility associated with bitcoin and the market’s cautious response to the company’s ongoing investment in the digital asset.
However, it managed to climb back up impressively on June 7, increasing 14% and reaching $32.35 at the time of writing.
The SEC filing also acknowledged this volatility, stating:
“Future fluctuations in bitcoin trading prices may result in our converting bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering.”
Despite the market’s mixed reactions, Semler remains steadfast in its belief in bitcoin’s long-term value. The company views Bitcoin as a unique and scarce asset that can potentially offer outsized returns.
In its SEC filing, Semler highlighted Bitcoin’s potential as an inflation hedge and its resilience amid global economic uncertainty.
“We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability,” the filing stated.
Semler Scientific has made it clear that its digital assets investment strategy is focused solely on Bitcoin. The company has no plans to diversify into other digital assets.
“Semler has no plans to purchase cryptocurrency assets other than bitcoin,” the company reiterated in its filings.
While Semler Scientific’s Bitcoin investments have garnered significant attention, the company remains committed to its core mission of developing and marketing innovative healthcare products.
Semler’s flagship product, QuantaFlo®, is a rapid point-of-care test that measures arterial blood flow in the extremities, aiding in the diagnosis of cardiovascular diseases such as peripheral arterial disease (PAD).
The company continues to focus on expanding its healthcare business, alongside its strategic investment in Bitcoin.
