The recent announcement that Semler Scientific intends to raise up to $500 million, primarily to acquire more Bitcoin, is more than just a risky bet. It’s a shocking lack of commitment to fiscal responsibility, and a possible slap in the face to shareholders. How can we, as corporate investors, sit silently on the sidelines and watch a healthcare company use deal-making to morph into a pure-play crypto fund.

Let's be blunt. For Semler Scientific, that’s a high price to pay. The CPI Unit has recently obtained a $29.75 million settlement in response to alleged fraud. The timing of this new Bitcoin craze is awfully convenient. It comes amid further settlement negotiations that started immediately after they increased their Bitcoin treasury by an additional $88 million earlier this year. Do they expect to make up the billions you settled for with a high-risk bet? So are they taking out a loan against Coinbase to settle with the DOJ, with our investments as collateral? This isn’t just concerning; it’s downright alarming.

Is this a Desperate Payout Scheme?

Picture this—you’re the head of a household, suddenly confronted with a massive legal expense. Would you personally take a second mortgage on your house to double down on a particularly unstable cryptocurrency. Of course not. You’d focus on paying down that debt and getting your fiscal house in order. Semler should do the same.

The chairman's justification, characterizing Semler as a "zombie company" before its Bitcoin pivot, insults investors' intelligence. Profitable with significant cash reserves? That’s the kind of company that’s ready to innovate and grow. Moving forward, it needs to prioritize smart, responsible growth rather than gambling on a potentially reckless crypto conversion.

What About "Zombie Company" Narrative?

Think about it: Semler has profitability and significant cash - the building blocks for something great. Instead of process, they’re gambling on the flip side of a constantly fluctuating asset that even the best investors have a hard time forecasting. It’s analogous to having a perfectly good internal combustion engine and then saying let’s just put jet fuel in it – a recipe for catastrophe.

Semler promotes Bitcoin as a store of value, an inflation hedge and a safe haven asset. Let's be honest: Bitcoin is anything but stable. Its price swings are legendary, propelled upward by speculation and hype, not fundamental value. A look at Semler’s own stock price (SMLR), off 39% year-to-date, should be a pretty sobering wake-up call. Semler has become the 12th largest public company by market capitalization that holds Bitcoin. Is that truly a list we’d like to be part of?

Bitcoin: Savior or Siren Song?

The pull of the get rich quick scheme is a dangerous siren song that has tempted more than just you to their fiscal doom. After all, Bitcoin has produced some massive returns. It poses major risks, especially for a firm focused on healthcare, not crypto trading. It's like a seasoned chef suddenly deciding to become a race car driver – skills don't transfer that easily.

Instead of chasing crypto dreams, what could Semler do with half a billion dollars?

These are all responsible, value-creating options that would serve both the company and its shareholders well over the long haul.

  • Invest in research and development to improve their QuantaFlo product and develop new healthcare solutions.
  • Expand their market reach and bring their products to more patients.
  • Return capital to shareholders through dividends or stock buybacks, rewarding their loyalty and patience.

Semler’s shareholders are entitled to more than a high-stakes roll of the dice on Bitcoin. All of us working together deserve transparency, accountability and a national commitment to responsible fiscal management. It's time to demand that Semler Scientific prioritizes its core business and its shareholders' interests over the fleeting allure of crypto speculation. It's time to ask: Is this really the best use of our investment? Because at this moment, it doesn’t feel like that at all—it feels like a betrayal.

Semler's shareholders deserve better than a reckless gamble on Bitcoin. We deserve transparency, accountability, and a commitment to responsible fiscal management. It's time to demand that Semler Scientific prioritizes its core business and its shareholders' interests over the fleeting allure of crypto speculation. It's time to ask: Is this really the best use of our investment? Because right now, it feels like a betrayal.