- June 8, 2024
- Posted by: [email protected]
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Semler Scientific (SMLR), a healthcare technology company that has recently turned to Bitcoin as a significant part of its corporate strategy, announced the acquisition of an additional 247 BTC, bolstering its corporate balance sheet. According to a press release issued late Thursday, the company spent $17 million on this latest purchase, including all fees and expenses, at an average price of $68,825 per bitcoin. By Friday, Bitcoin’s price had risen to $71,200 per coin, reflecting a positive market movement for the cryptocurrency.
This latest acquisition brings Semler’s total Bitcoin holdings to 828 BTC, which the company has acquired for an aggregate of $57 million. As a result, Semler Scientific has so far realized a modest gain of $1 million on its investment. CEO Doug Murphy-Chutorian commented on this strategic move, saying, “Semler remains focused on our two strategies of expanding our healthcare business and acquiring and holding bitcoin.”
Semler announced last month its decision to adopt Bitcoin as its primary treasury reserve asset. This makes it the second publicly traded US company to take such a step, following in the footsteps of MicroStrategy (MSTR), which is renowned for its significant investments in Bitcoin. This strategic pivot has had a noticeable impact on Semler’s stock performance. On the day of its initial Bitcoin purchase announcement, SMLR stock surged 33%, and following the latest announcement, it spiked another 9%. Currently, Semler’s market capitalization stands at $223 million, nearly four times the value of its Bitcoin holdings.
In a recent SEC filing, Semler revealed plans to raise $150 million through a debt securities sale. The proceeds from this sale are earmarked for general corporate purposes, including further acquisitions of Bitcoin. This strategy closely mirrors that of MicroStrategy, which has successfully issued billions of dollars in convertible notes to fund its aggressive Bitcoin acquisition strategy.
Murphy-Chutorian emphasized the company’s commitment to its dual strategy, stating, “Bitcoin is a compelling investment and can serve as a reliable store of value. We will continue to pursue our strategy of purchasing bitcoins with cash.” The company’s approach is based on the belief that Bitcoin offers substantial long-term benefits and the potential for outsized returns. Company Chairman Eric Semler has echoed these sentiments, stating that Bitcoin has the potential to generate significant returns as it gains wider acceptance as “digital gold.” He pointed out that Bitcoin possesses “digital and architectural resilience,” making it preferable to traditional gold, which currently has a market cap ten times larger than Bitcoin’s.
Semler’s move into bitcoin follows a trend seen in other parts of the world. For instance, Japanese public firm Metaplanet announced its goal to acquire as much Bitcoin as possible, which has resulted in the company becoming one of Japan’s best-performing stocks. Like Metaplanet, Semler is exploring innovative ways to use capital markets to enhance shareholder value and increase its Bitcoin holdings, signaling a broader trend among forward-thinking companies to integrate cryptocurrency into their financial strategies.
