Semler Scientific Adopts Bitcoin as Primary Treasury Asset, Buys $40M in BTC

Semler Scientific has made a significant move by adopting Bitcoin (BTC) as its primary treasury reserve asset. The healthcare technology firm disclosed the purchase of 581 BTC, valued at approximately $40 million. Thus it appears, that the firm bought Bitcoin for about $68800 per Bitcoin.

Semler Scientific's chairman and TCS Capital Management's president, Eric Semler, explained the rationale behind this move. 

“Our Bitcoin treasury strategy and purchase of Bitcoin underscore our belief that Bitcoin is a reliable store of value and a compelling investment,” Semler stated. 

Before adopting Bitcoin, Semler Scientific reportedly conducted a thorough evaluation of various treasury assets. The company explored the viability of cash and other alternatives before deciding on Bitcoin. 

Unique Characteristics of Bitcoin

Eric Semler highlighted Bitcoin’s unique attributes, describing it as a scarce and finite asset. He emphasized its potential as an inflation hedge and a safe haven amid global instability. 

“We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability,” Semler noted.

Semler also drew comparisons between Bitcoin and gold, highlighting Bitcoin’s digital resilience. He argued that Bitcoin, with a market value significantly lower than gold, has the potential for outsized returns as it gains acceptance as digital gold. 

Financial Performance and Strategy

Semler Scientific provides technology devices and software for healthcare providers. According to its latest earnings report, the company generated $15.9 million in revenue in the first quarter of 2024, down 13% from the same period last year. 

However, net income increased by 22%, reaching $6.1 million. Semler’s balance sheet showed $83.86 million in assets as of the end of March.

Semler Scientific’s move aligns with broader trends in the financial industry, including the growing acceptance of Bitcoin among institutions. Earlier this year, the U.S. Securities and Exchange Commission (SEC) approved Spot Bitcoin ETFs, further legitimizing the cryptocurrency. 

Likewise, companies such as MicroStrategy, have also integrated Bitcoin into their financial operations.