Medical Manufacturer Semler Scientific Adds $17M Bitcoin to Treasury, Plans More Purchases
Summary:
Semler Scientific, a Nasdaq-listed medical manufacturer, expands its Bitcoin holdings by $17 million, currently owning 828 Bitcoin valued at over $58.5 million. The firm plans to raise up to $150 million to further increase these Bitcoin purchases. Semler views Bitcoin as a secure store of value and a safeguard against inflation, with no plans to invest in other cryptocurrencies. The announcement initially boosted the company's stock by 30%, but subsequent data shows a 2.5% drop.
Semler Scientific, a medical manufacturing company listed on Nasdaq, has emerged in the news once again for expanding its Bitcoin (BTC) holdings. The company has added $17 million worth of Bitcoin to its balance sheet, and now has future plans to raise up to $150 million to further increase these Bitcoin purchases. In an S-3 filing with the US securities regulator on June 6, Semler revealed it currently holds 828 Bitcoin, putting its Bitcoin assets at a value exceeding $58.5 million. The company emphasized its belief in Bitcoin as a promising investment route and a secure store of value.
Semler's plans for debt security don't seem to be on the backburner, with the recent announcement regarding an additional $150 million of debt securities. These funds are intended for corporate purposes, primarily including more Bitcoin acquisitions.
In a statement on June 6, CEO Doug Murphy-Chutorian emphasized that Bitcoin has now risen to one of the company's main focuses, on par with its healthcare branch. The company views Bitcoin as a safeguard against inflation and a stronghold during periods of worldwide upheaval, as per its SEC filing. The company also stated a preference for Bitcoin over gold, sighting the former's digital sturdiness, and anticipating significant returns as Bitcoin is increasingly viewed as 'digital gold'. Notably, the firm confirmed that it will not expand its treasury beyond Bitcoin.
The company's decision to invest in Bitcoin sent Semler's (SMLR) stock up by 30% on the announcement date, May 28. However, their stock did experience a dip of 2.5% to $29.13 on June 6, according to Google Finance data.
Another company undergoing a similar journey is Japan-based Metaplanet, which followed Semler's investment trajectory into Bitcoin. The firm's starting investment of $6.5 million from April 8 in Bitcoin has now grown to 117.7 Bitcoin, amounting to $8.3 million of its current value. Metaplanet’s latest Bitcoin purchase on May 22 played a significant role in making it the top-performing stock on the Tokyo Stock Exchange for two consecutive days.
Published At
6/7/2024 7:27:33 AM
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