Semler Scientific, a little-known medical technology company, announced on Tuesday that it has adopted bitcoin as its primary treasury reserve asset.
The company, which develops products used in the detection of peripheral arterial disease, also disclosed the purchase of 581 bitcoins for approximately $40 million, inclusive of fees and expenses. This strategic decision caused Semler’s stock to skyrocket by an impressive 37%, while bitcoin itself traded lower by about 2%.
TLDR
- Semler Scientific, a medical technology company, saw its shares surge 37% after announcing it has adopted bitcoin as its primary treasury reserve asset.
- The company purchased 581 bitcoins for about $40 million, inclusive of fees and expenses.
- Semler believes bitcoin is a reliable store of value, a compelling investment, and can serve as a reasonable inflation hedge and safe haven amid global instability.
- The move puts Semler in the same company as MicroStrategy, which began employing an aggressive bitcoin-buying strategy in 2020 and has primarily traded as a proxy for the crypto’s price since then.
Semler Scientific’s chairman, Eric Semler, expressed the company’s strong belief in bitcoin, stating,
“Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment. 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.”
The chairman further emphasized the potential of bitcoin, comparing it to gold, which has a market value approximately ten times that of the cryptocurrency.
Semler believes that given the significant gap in value between the two assets, bitcoin has the potential to generate substantial returns as it gains increasing acceptance as a digital alternative to gold.
This bold move by Semler Scientific places the company in the same league as MicroStrategy, a well-known proponent of bitcoin. MicroStrategy began its aggressive bitcoin-buying strategy back in 2020 and has since primarily traded as a proxy for the cryptocurrency’s price.
MicroStrategy’s stock has seen a remarkable 163% increase this year alone, largely due to its bitcoin holdings.
Despite the significant shift in its treasury strategy, Semler Scientific remains committed to its core mission in the healthcare industry.
The company will continue to focus on delivering innovative technologies as solutions to transform the management of chronic diseases and offer providers the opportunity to reduce costs while improving long-term patient outcomes. Semler’s flagship product, QuantaFlo®, a point-of-care test for peripheral arterial disease, will remain a top priority, and the company will seek expanded FDA clearance for other cardiovascular conditions.
Semler Scientific’s board and senior management have carefully considered various uses of excess cash and concluded that holding bitcoin is the best strategy for the company.
The growing global acceptance and “institutionalization” of bitcoin, as reflected by the Securities and Exchange Commission’s recent approval of 11 bitcoin exchange-traded funds, has further energized the company’s decision.
These funds have reported more than $13 billion in net inflows, with investments from nearly 1,000 institutions, including global banks, pensions, endowments, and registered investment advisors. It is estimated that more than 10% of all bitcoins are now held by institutions, indicating a growing trend of mainstream adoption.
