Semler Scientific Raises $150 Million to Acquire Bitcoin, No Plans to Buy Other Cryptocurrencies

Key Takeaways

• Semler Scientific invested an additional $17 million in Bitcoin, bringing its total holdings to 828 bitcoins, or about $57 million.
• Semler plans to raise $150 million through debt securities and common stock to further expand his Bitcoin holdings.
• Semler has explicitly stated that he has no plans to invest in any cryptocurrency other than Bitcoin.

Semler Scientific, Inc. (Nasdaq: SMLR) announced yesterday that it had invested an additional $17 million in Bitcoin, bringing its total holdings to 828 Bitcoin, worth approximately $57 million.

US-based Semler Scientific is known for developing products that address chronic diseases. However, the company’s latest financial strategy highlights a broader strategy that leverages Bitcoin not only as a reserve asset but also as a fundamental component of its investment portfolio.

According to Doug Murphy-Chutorian, MD, CEO of Semler, “Our commitment to expanding our healthcare business runs parallel to our belief that Bitcoin is an attractive investment and a reliable store of value.” He further emphasized the company’s ongoing strategy to increase its Bitcoin reserves, which it funds through cash reserves.

In a strategic move reminiscent of MicroStrategy’s pioneering cryptocurrency investments, Semler disclosed plans to raise $150 million through debt securities and common stock. The capital will be allocated to additional Bitcoin acquisitions, strengthening the company’s position on the cryptocurrency as a hedge against inflation and a safe haven amid global instability.

The company’s recent SEC filing shows a calculated and optimistic view on Bitcoin. Semler sees Bitcoin’s unique characteristics, including its scarcity and digital resilience, as factors that make it preferable to traditional assets such as gold.

“We see Bitcoin as a reliable store of value and an attractive investment vehicle. We believe it has the unique characteristics of being a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability,” Semler noted in the filing.

Semler argues that the significant market value gap between gold and Bitcoin presents an opportunity for huge returns as Bitcoin continues to be seen as “digital gold.”

“We also believe it has better digital and structural resilience than gold, whose market value significantly exceeds that of Bitcoin. Given the value difference between gold and Bitcoin, we believe there is potential for Bitcoin to generate huge returns as it becomes increasingly accepted as “digital gold.”

Semler perceives Bitcoin as a safer and more reliable investment compared to other cryptocurrencies.

“We believe that Bitcoin’s unique properties discussed above distinguish it from fiat as well as other cryptocurrency assets, and for this reason we do not plan to purchase any cryptocurrency assets other than Bitcoin.”

This corporate endorsement of Bitcoin comes at a time when other companies, such as Japanese company Metaplanet, are also beginning to bolster their cryptocurrency reserves, following the trend set by MicroStrategy. Since MicroStrategy’s initial investment in 2020, MicroStrategy’s aggressive Bitcoin acquisition strategy has not only amplified its own stock price, but also fueled the company’s broader shift toward cryptocurrency investments.

Semler’s aggressive shift toward Bitcoin represents a growing trend among public companies recognizing cryptocurrencies as a viable component of their investment strategies, potentially leading to broader acceptance of Bitcoin on corporate balance sheets across a variety of industries. Lay a foundation.

Also Read: Bitcoin Short-Term Outlook Uncertain Despite Ether ETF Approval – Report