Semler Scientific, Inc. (Nasdaq: SMLR), a company at the forefront of developing technology products for healthcare providers, has announced the purchase of an additional 247 bitcoins, amounting to $17 million in cash. This brings the company’s total Bitcoin holdings to 828 bitcoins, acquired at an aggregate cost of $57 million, inclusive of fees and expenses, as of 6 June 2024. This acquisition underscores Semler’s strategic initiative to incorporate Bitcoin as a key component of its financial strategy.
Semler Scientific, renowned for its innovative medical products and services, primarily markets QuantaFlo®, a rapid point-of-care test cleared by the FDA. QuantaFlo® measures arterial blood flow in the extremities, assisting in the diagnosis of cardiovascular diseases, particularly peripheral arterial disease (PAD). The company is pursuing new 510(k) clearance to broaden QuantaFlo®’s applications, enabling healthcare providers to evaluate patients’ risks of mortality and major adverse cardiovascular events (MACE).
On 28 May 2024, Semler Scientific revealed its acquisition of 581 bitcoins for $40 million, including fees and expenses. This move reflects the company’s confidence in Bitcoin as a reliable store of value and an attractive investment.
Eric Semler, the company’s chairman, highlighted Bitcoin’s significance as a major asset class. He emphasized Bitcoin’s scarcity and finite supply, presenting it as a viable hedge against inflation and a safe haven amid economic uncertainties. Semler noted that Bitcoin’s digital resilience and architecture provide advantages over gold, which has a market value approximately ten times that of Bitcoin. He suggested that Bitcoin’s potential acceptance as digital gold could yield significant returns.
Semler also pointed to the growing institutional acceptance of Bitcoin, underscored by the U.S. Securities and Exchange Commission’s approval of 11 Bitcoin exchange-traded funds (ETFs) on 10 January 2024. These ETFs have garnered over $13 billion in net inflows from nearly 1,000 institutions, including global banks, pensions, endowments, and registered investment advisors. Institutions now hold over 10% of all bitcoins.
Before deciding on Bitcoin, Semler Scientific’s board and senior management evaluated various uses for their cash reserves, including acquisitions. Eric Semler explained that after considering different options, the company determined that investing in Bitcoin was the best use of its excess cash.
According to a press release issued on 6 June 2024, Dr. Doug Murphy-Chutorian, MD, Semler Scientific’s CEO, had this to say about his firm’s latest Bitcoin purchase:
“Semler remains focused on our two strategies of expanding our healthcare business and acquiring and holding bitcoin. The company now holds 828 bitcoins, underscoring our view that bitcoin is a compelling investment and can serve as a reliable store of value. We will continue to pursue our strategy of purchasing bitcoins with cash.”
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