Semler Scientific, a provider of medical risk-assessments, announced $500 million in offering of new securities. The company intends to use the net proceeds "primarily for general corporate purposes, including the acquisition of bitcoin." This action would raise Semler Scientific’s already large Bitcoin assets to a great degree.
The company’s current stock price, trading under the consolidated ticker SMLR, has plummeted 37% year-to-date to $34.40. Despite all this downturn, Semler Scientific is continuing with its plan to pave the way to invest in Bitcoin.
Bitcoin Strategy and Holdings
Semler Scientific is now sitting on 3,192 BTC. This highly notable sum puts them at 12th place of all public companies that hold Bitcoin, per Bitcoin Treasuries data. The company’s “cash on hand” will be the source of funds for its ETH and BTC purchases. Proceeds from its $500 million loan agreement with Coinbase will be used to fund these acquisitions.
Semler Scientific's Bitcoin treasury strategy, implemented in May 2024, has already transformed the company's financial profile. On February 7, the company increased its Bitcoin treasury to $1.5 billion by adding $88 million. They stated that this maneuver produced an astounding 152% return on their Bitcoin investments at the time.
Loan and Collateral
Semler Scientific intends to use its Bitcoin holdings as collateral for a loan from Coinbase to finance operations and growth. By adopting this strategy, this company is signaling its extreme confidence in Bitcoin as an asset.
"reliable store of value and a compelling investment" - Semler Scientific
Semler Scientific views Bitcoin as a "reliable store of value and a compelling investment," indicating a long-term commitment to cryptocurrency.
DOJ Settlement
Semler Scientific is reportedly working to settle the case for $29.75 million with the U.S. Department of Justice. This settlement is intended to remedy alleged violations of federal anti-fraud statutes. The deal stems from Semler Scientific’s QuantaFlo product promotion. Despite the settlement, the company is proceeding with its plans to expand its Bitcoin holdings through the new securities offering.
