Semler Scientific, a healthcare technology company, saw its shares surge by 27% after announcing plans to adopt bitcoin as its primary treasury reserve asset. The company purchased 581 bitcoins for $40 million, underscoring its belief in bitcoin as a reliable store of value and a compelling investment.
Key Takeaways
- Semler Scientific adopts bitcoin as its primary treasury reserve asset.
- The company purchased 581 bitcoins for $40 million.
- Shares surged by 27% following the announcement.
- Bitcoin is seen as a reliable store of value and a compelling investment.
Semler Scientific’s Bitcoin Strategy
Semler Scientific, a pioneer in developing technology products for healthcare providers, announced that its board of directors has adopted bitcoin as its primary treasury reserve asset. The company purchased 581 bitcoins for an aggregate amount of $40 million, inclusive of fees and expenses.
"Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment," said Eric Semler, the company’s chairman. He highlighted bitcoin’s unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability.
Market Reaction
Following the announcement, Semler Scientific’s shares rose by as much as 27%, closing at $29.50 per share. This surge reflects investor confidence in the company’s new strategy. The market capitalization of Semler Scientific’s shares reached over $200 million.
Institutional Adoption of Bitcoin
Eric Semler also pointed to the growing global acceptance and institutionalization of bitcoin. The Securities and Exchange Commission’s approval of 11 bitcoin exchange-traded funds (ETFs) in January 2024 has further validated bitcoin as a major asset class. These ETFs have reported more than $13 billion of net inflows, with investments from nearly 1,000 institutions, including global banks and pension funds.
Continued Focus on Core Business
Despite the new bitcoin strategy, Semler Scientific remains committed to its core medical products and services. The company will continue to focus on maintaining sales of QuantaFlo®, a rapid point-of-care test for peripheral arterial disease, while seeking new FDA clearances for expanded indications.
Comparison with Other Companies
Semler Scientific’s move mirrors the strategy of other companies like MicroStrategy, which began converting its treasury into bitcoin in 2020. Tesla and Block are also among the companies that keep some amount of bitcoin on their balance sheets. This trend, although not yet widespread, indicates a growing acceptance of bitcoin as a corporate treasury asset.
Future Outlook
As Semler Scientific continues to generate revenue and free cash flow from its core business, it will proactively evaluate its use of excess cash. Bitcoin will serve as the company’s principal treasury holding on an ongoing basis, subject to market conditions and anticipated cash needs.
For more information, visit Semler Scientific’s website.
Sources
- Semler Scientific® Announces Bitcoin Treasury Strategy, PR Newswire.
- Semler Scientific Adopts Bitcoin Strategy – Cointribune, Cointribune.
- Healthcare tech company shares surge 27% after announcing plans to buy bitcoin with cash reserves | The Block, The Block.
- Stock Chart Icon, CNBC.
- Semler Scientific Announces Bitcoin (BTC) Treasury Strategy, CoinDesk.
