Semler Scientific Buys $17M More Bitcoin and Plans to Raise $150M for Further Purchases

Medical device manufacturer Semler Scientific (Nasdaq: SMLR) has announced a significant expansion of its Bitcoin holdings. 

The company has acquired 247 additional Bitcoin for $17 million in cash, bringing its total holdings to 828 BTC, according to a recent SEC filing.

To further increase its Bitcoin reserves, Semler plans to raise $150 million. In an S-3 form filed with the SEC, the company outlined its intention to issue debt securities, a portion of which will be used to purchase more Bitcoin. 

Corporate Vision

This initiative is part of Semler's broader strategy to leverage Bitcoin as a "reasonable inflation hedge and safe haven amid global instability."

CEO Doug Murphy-Chutorian emphasized the dual focus of Semler's strategy: expanding its healthcare business while acquiring and holding Bitcoin. 

"Semler remains focused on our two strategies of expanding our healthcare business and acquiring and holding Bitcoin. We will continue to pursue our strategy of purchasing Bitcoins with cash, Murphy-Chutorian stated"

Bitcoin as a Treasury Reserve Asset

Semler made headlines last month when it adopted Bitcoin as its primary treasury reserve asset. Semler’s 828 Bitcoin were acquired for $57 million and are now worth $59.2 million, according to current market data.

In its SEC filing, Semler noted Bitcoin's potential as a digital asset with resilience comparable to gold. 

"We also believe that its digital, architectural resilience makes it preferable to gold, which has a market value that greatly exceeds the market value of Bitcoin. Given the gap in value between gold and Bitcoin, we believe that Bitcoin has the potential to generate outsized returns as it gains increasing acceptance as 'digital gold, '" the company stated.

Semler reiterated that it has no plans to purchase other cryptocurrency assets, focusing solely on Bitcoin. 

This strategy aligns with the growing trend of public companies adding Bitcoin to their balance sheets, recognizing its potential to boost enterprise value. The move mimics MicroStrategy's influential strategy, which has seen its Bitcoin holdings grow significantly and see positive investor response. 

Semler Scientific's stock rose 6.28% on Friday, and trading at $31.15, as of writing, according to Yahoo Finance data.