Medical Tech Firm Semler Scientific Invests in Bitcoin, Acquires 581 BTC
On Tuesday, the publicly traded medical technology firm Semler Scientific announced its decision to allocate bitcoin to its treasury. The company disclosed that it had acquired 581 bitcoins for a total of $40 million.
Semler Scientific Embraces Bitcoin
Joining the trend initiated by Microstrategy in 2020, another company has reportedly begun holding bitcoin on its balance sheet. Semler Scientific, Inc., known for developing, manufacturing, and marketing products and services for early detection and treatment of chronic diseases, was co-founded by Dr. Herbert J. Semler in 2007. Eric Semler, the company’s chairman, expressed a strong belief in bitcoin’s future.
“Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment,” Semler stated. “Bitcoin is now a major asset class with more than $1 trillion of market value. 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 added:
We also believe its digital, architectural resilience makes it preferable to gold, which has a market value of approximately 10 times that of bitcoin. Given the gap in value between gold and bitcoin, we believe that bitcoin has the potential to generate outsize returns as it gains increasing acceptance as digital gold.
The company claims that the board and senior management dedicated considerable time to exploring possible uses for their cash reserves, including acquisitions. After evaluating different options, the company concluded that holding bitcoin was the most advantageous use of their excess funds, Semler explained. Following the announcement, Semler Scientific (Nasdaq: SMLR) increased by over 20% at the beginning of Tuesday’s trading sessions.
Some companies have been criticized for using announcements of BTC reserves to boost their stock. Nilam Resources, a South American gold miner, faced accusations of engaging in a mere publicity stunt. After Nilam announced plans to acquire bitcoins, the company later issued a press release retracting the statement following a sharp rise in its stock. Following the Semler announcement, Microstrategy’s founder Michael Saylor shared the medical company’s news on the social media platform X.
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