This isn’t the only reason Semler Scientific has jumped headfirst into the Bitcoin rabbit hole. It’s a bold move either way—genius or reckless financial cliff dive. Think of a high-wire walker, only instead of a safety net, they’re walking on the often fickle price of Bitcoin. The sheer audacity is breathtaking. Is it responsible?
Freedom To Choose Or Foolish?
Let's be clear: Semler has the right to allocate its capital as it sees fit. This is the very foundation of a free market. They think Bitcoin is better money. It protects them from the ongoing devaluation of fiat currencies and is a better long-term store of value. They're not alone. MicroStrategy has widened this trail, and just like Semler now, others are following, with the goal of laying claim to one of the biggest corporate Bitcoin treasuries. They’ve gone so far as to hire Joe Burnett, a self-proclaimed Bitcoin evangelist, as their Director of Bitcoin Strategy.
Is this freedom responsible? Semler is based on an incredible 287% BTC yield and $177 million profit since May 2024, fueled by an incredible bull run until June 3, 2025. As the price history clearly illustrates, Bitcoin has been a highly volatile investment asset. Remember 2022? That was far from a smooth ride.
What About Shareholder Needs?
How do you reconcile the shareholders who bought shares in a medical technology firm, not a Bitcoin investment vehicle. Semler’s main business these days is creating and selling devices such as QuantaFlo™, a non-invasive device that helps doctors assess arterial blood flow. That's where their expertise lies. For every dollar Bitcoin companies are pouring into it, that’s a dollar they’re not spending on research and development or growing their core business.
What if, instead of buying more Bitcoin, Semler invested in refining QuantaFlo to detect early signs of diabetic foot ulcers, a major health crisis in many developing nations? Just think, if they did, if they put that same capital to work to expand their reach in places like Accra. There, access to advanced medical technology is even more limited.
From an Accra-based point of view, capital is hard to come by and cash flow is always a challenge. Depending on your perspective, this move could be viewed as the height of irresponsibility or a brilliantly creative attempt to leapfrog outdated financial infrastructure. It gets at the heart of this great underlying tension between speculative and real investment and need. It’s a false choice between possible exponential returns and ignoring the need for very real, observable progress now on the ground in increasing access to healthcare.
Regulatory Risks: Are They Prepared?
The regulatory landscape surrounding Bitcoin is a veritable minefield. Governments around the world are still trying to get a handle on how to classify, regulate, and tax cryptocurrencies. Semler is navigating uncharted waters. A sudden regulatory crackdown would have the potential to smash their Bitcoin holdings.
Consider what the SEC was saying about crypto ETFs prior to their eventual approval. What happens when the next similar regulatory hurdle pops up? Each of these challenges would greatly complicate, if not completely prevent, Semler from selling their Bitcoin holdings when cash is needed. This isn’t only about market volatility, it’s especially about political and legal volatility—forces entirely outside of Semler’s control.
Semler, like MicroStrategy, is all in on Bitcoin. However, in contrast to MicroStrategy, they’re a significantly smaller company with a much more limited core business. This difference in scale amplifies the risk. In the event of a Bitcoin crash, MicroStrategy would be better equipped to hang on through the downturn. Semler? The consequences could be catastrophic.
So, is Semler’s Bitcoin bet genius or a gamble? The answer, like Bitcoin itself, is volatile. The upside and the potential for hugely outsized gains are real, but so too is the risk of equally outsized losses. I honor their autonomy to take this journey. Deep down, I think they know that they’re on a slippery slope and that they’re betting the farm and shareholder money.
The answer is much larger than Bitcoin’s future. Perhaps more importantly, it challenges us to reimagine the future of corporate responsibility in this brave new world of cryptocurrency. Are businesses turning over a new leaf? Are they really renouncing their fiduciary duty by focusing on speculative investments over their fundamental duty to their businesses and stakeholders? Time will tell.
