Semler Scientific Bolsters Treasury with $17 Million Bitcoin Investment
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Medical manufacturing company Semler Scientific is significantly increasing its investment in Bitcoin as a reserve asset for its corporate treasury. The firm announced its purchase of an additional 247 Bitcoin worth $17 million on June 6.
Semler Increases Bitcoin Holdings to 828 BTC
In a statement by Semler, this latest acquisition brings the company’s total Bitcoin holdings to 828 BTC, valued at approximately $57 million, including fees and expenses.
Describing this new achievement, Semler CEO Doug Murphy-Chutorian said the purchase demonstrates the company’s belief in Bitcoin as “a compelling investment and reliable store of value.”
He also stated Semler would “continue to pursue its strategy of purchasing bitcoins with cash” while maintaining focus on its core healthcare business operations.
In a filing with the U.S. Securities and Exchange Commission, Semler indicated it may issue up to $150 million in debt securities to fund further Bitcoin purchases, with potential proceeds allocated “primarily for general corporate purposes, including the acquisition of Bitcoin.”
Market analysts view Semler’s Bitcoin strategy as logical for cash-heavy businesses seeking a secure store of value assets.
Last week, Semler Scientific @SemlerEric bought $40 million in BTC, and made bitcoin their reserve treasury asset.
This will happen more from public and private companies as inflation remains, and accounting rules set in. pic.twitter.com/gSgxUMWDBH
— Adam Blumberg (@Interaxis8) June 5, 2024
Sina G, co-founder of crypto investment firm 21st Capital, commented that “adopting a Bitcoin treasury is the logical strategy for cash-heavy businesses” like Semler, which has $57 million in cash equivalents comprising 73% of its assets.
Adopting a Bitcoin treasury is the logical strategy for cash-heavy businesses.
Semler Scientific has $57M in cash and cash eq., which is the majority of their assets (i.e., 73%)
They have a ton of cash and need a store of value. How many other companies are in the same boat? https://t.co/QGsam7QGwo pic.twitter.com/25OcNScSPh
— Sina 🗝️⚡ 21st.Capital (@Sina_21st) May 28, 2024
Following this announcement, Semler’s stock (SMLR) rose by over 9% in pre-market trading and currently sits at exactly $31.88 per share.
Semler Joins MicroStrategy and Tether in Corporate Bitcoin Adoption
Semler joins an increasing number of public companies, led by MicroStrategy, in adopting Bitcoin as a reserve asset amid growing institutional adoption trends.
Microstrategy has solidified its position as the largest corporate holder of Bitcoin worldwide, recently boosting its holdings to nearly $14 billion.
In its latest financial report for the first quarter (Q1) 2024, MicroStrategy disclosed the acquisition of an additional 25,250 Bitcoins, bringing its total Bitcoin holdings to an unprecedented 214,400 BTC.
This investment means Microstrategy now owns over 1% of all Bitcoins in circulation, showcasing its trust in the digital asset.
On March 31, Tether, the firm behind the prominent USDT stablecoin, joined Microstrategy in BTC adoption by acquiring 8,888 Bitcoins worth $618 million. An investment that increased Tether’s total Bitcoin holdings to 75,354 BTC, with an average buy-in rate of $30,305.
At press time, Tether’s Bitcoin holdings are valued at a staggering $5.2 billion, making it the seventh-largest institutional holder of Bitcoin worldwide.
Unlike other stablecoin issuers, Tether maintains a reserve composition of 84.58% cash, cash equivalents, and short-term deposits, with the remainder backed by precious metals, Bitcoin, and secured loans.
Since 2023, Tether has been strategically allocating its profits towards Bitcoin acquisition, aligning with the growing institutional interest in the cryptocurrency, as experts like Robert Kiyosaki advised investment in Bitcoin as a viable asset and that its price could surge to unprecedented levels.
Only three corporate entities – MicroStrategy, Bitfinex (another company affiliated with Tether’s Paolo Ardoino), and Binance hold larger Bitcoin treasuries than Tether.
With newly launched spot Bitcoin ETFs exposing over 600 firms to the asset class in 2024, further corporate treasury investments are anticipated, especially as inflation concerns persist.
Japanese company Metaplanet provides a recent example, buying $6.5 million in Bitcoin in April and electing to denominate its corporate treasury in the cryptocurrency, contributing to significant stock price appreciation.
