Semler Scientific (SMLR) Stock Jumps 30% Following Shift to Bitcoin as Main Treasury Reserve Asset
Summary:
Semler Scientific's (SMLR) stock experienced a 30% leap following their decision to make Bitcoin their main treasury reserve asset, buying 581 Bitcoins for $40 million. The company, which experienced a 13% revenue drop in 2024's first quarter but saw a 22% increase in net income, chose to utilize their surplus cash by investing in Bitcoin rather than gold because of the digital asset's potential for higher returns as it gains widespread acceptance.
Bouncing 30% on May 28, shares in Semler Scientific (SMLR), a company listed on Nasdaq, surged following their announcement that Bitcoin will become the main asset in their treasury reserve. Semler Scientific recently acquired 581 Bitcoin (BTC) with a total value of $40 million as part of this strategy. Chairman of Semler Scientific, Eric Semler, who also presides over TCS Capital Management, an investment fund particularly recognized for its assertive investment practices, expressed that Bitcoin is a trustworthy asset in which to store value. Despite this, his fund doesn't seem to have any direct or tangential Bitcoin exposure. Semler hailed Bitcoin's uniqueness as a finite resource, offering reasonable inflation protection and a secure haven amidst global uncertainty.
Semler Scientific manufactures technological devices and software solutions for healthcare providers. According to their most recent earnings report, they garnered $15.9 million in revenue during 2024's first quarter, a 13% decline compared to the same timeframe last year. Nevertheless, their net income experienced a 22% climb, amassing $6.1 million. As of March, Semler Scientific reported $83.86 million worth of assets in their balance sheet.
Upon probing various possibilities for their cash reserves use, which also involved looking into potential acquisitions, the company’s board of directors and senior management agreed that holding Bitcoin was the most advantageous utilization of surplus cash, as stated in their announcement. Semler emphasized Bitcoin's architectural robustness as a reason why it outranked gold. “Considering the value gap between gold and bitcoin, we perceive bitcoin as being capable of producing exceptional returns as it grows more widely accepted as digital gold,” he pointed out. Echoing the practices of MicroStrategy (MRST), the biggest corporate bitcoin holder, Semler Scientific also uses BTC as a primary reserve asset. As of March 31, MicroStrategy possessed 214,400 Bitcoin, amounting to $13.5 billion, which were acquired at an average price of $35,180.
Published At
5/28/2024 6:38:24 PM
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