Semler Scientific, a healthcare technology company renowned for its innovative solutions, has made a significant foray into the cryptocurrency realm. The company has recently bolstered its Bitcoin holdings, amassing a total of 1,873 BTC at an average purchase price of $78,553 per Bitcoin. In a strategic move between November 25 and December 4, 2024, Semler acquired an additional 303 BTC for $29.3 million, averaging a cost of $96,779 per Bitcoin. This bold maneuver is part of their overarching plan to incorporate Bitcoin into their financial operations, a move they assert is in line with shareholder interests.
Notably, Semler Scientific has observed a 13.32% decrease in short interest, with 892,000 shares currently being sold short, representing 13.28% of its tradable shares. Based on existing trading volumes, it would take traders an average of 1.46 days to cover these positions.
Funding the recent Bitcoin buying spree has been facilitated through an at-the-market (ATM) equity offering in collaboration with Cantor Fitzgerald & Co. Initially targeting $50 million, Semler subsequently doubled the offering to $100 million. As of now, they have generated $79.8 million in gross proceeds, propelling their Bitcoin acquisition strategy forward.
A novel metric introduced by Semler, known as BTC Yield, has been employed to assess the performance of their Bitcoin holdings. BTC Yield reflects the percentage change in the ratio between Bitcoin holdings and outstanding shares. Since the inception of their Bitcoin treasury strategy in July 2024, their BTC Yield has surged to an impressive 78.7%, with a notable 54.7% increase recorded in the latest period. It’s important to note that BTC Yield does not serve as a profitability metric but rather underscores how Bitcoin investments align with shareholder equity.
Eric Semler, the chairman of the company, has expressed optimism regarding their crypto strategy, highlighting its potential for long-term shareholder benefits. In addition to Bitcoin, Semler is also seeking approval for options trading on their stock, signaling a diversification of their financial approach. While acknowledging risks such as Bitcoin’s volatility and reliance on equity sales to fund acquisitions, the company remains steadfast in its belief in Bitcoin’s long-term potential, evident in their aggressive acquisition strategy at an average purchase price of $78,553 per BTC.
Bitcoin, the leading cryptocurrency, recently soared to $103,047.71, marking a significant milestone as its market capitalization surged by 6.84% to $2.03 trillion, according to CoinMarketCap. Presently, Bitcoin is trading at $102,388.46, reflecting robust upward momentum in the market.
In conclusion, Semler Scientific’s strategic move into the cryptocurrency realm signifies a bold commitment to integrating Bitcoin into their financial operations. With a keen eye on shareholder interests and a firm belief in Bitcoin’s long-term potential, the company’s recent Bitcoin acquisitions underscore their confidence in navigating the volatile yet promising world of cryptocurrencies.