tl;dr
Semler Scientific, a healthcare tech firm, plans to raise up to $500 million through a new securities offering to potentially increase its Bitcoin holdings. The funds will be used for general corporate purposes, including acquiring Bitcoin, working capital, research, and complementary technology inv...
Semler Scientific, a healthcare technology firm, is gearing up to raise as much as $500 million through a new securities offering primarily aimed at expanding its Bitcoin holdings. The funds raised will be allocated toward general corporate purposes, including acquiring more Bitcoin, boosting working capital, financing research, and investing in technologies that complement its healthcare focus.
Recently, Semler reached a tentative $29.75 million settlement with the U.S. Department of Justice over alleged anti-fraud violations connected to its QuantaFlo product. To settle this amount, the company intends to secure a loan from Coinbase, using its existing Bitcoin holdings as collateral. This financial maneuver follows a significant shift in strategy since May 2024, when Semler adopted a Bitcoin treasury approach, dramatically improving its financial profile and positioning Bitcoin as a reliable store of value and hedge against inflation.
Since stepping into the Bitcoin arena, Semler boasts 3,192 BTC in its treasury and claims to have generated returns as high as 152%. These moves have transformed the company from what its chairman Eric Semler previously described as a “zombie company,” with stagnant stock performance despite strong cash reserves, into a notable player in the Bitcoin investment landscape. Currently, Semler ranks 12th among public companies holding Bitcoin.
Despite these ambitious efforts, Semler’s stock price has fallen 37% year-to-date, trading at around $34.40 per share. The company’s latest shelf registration statement filed with the SEC allows for issuing various securities, including common and preferred stock, debt securities, warrants, and units, giving it flexibility to raise capital over time.
Ultimately, Semler Scientific’s strategy underscores a growing trend of firms diversifying corporate treasuries with Bitcoin, reflecting confidence in its scarcity and finite nature as a hedge against global economic instability. It raises the question: will more companies follow suit in turning to cryptocurrency amid uncertain financial climates?