Semler Scientific Stock Options Begin Trading After Bitcoin-Fueled Price Surge

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As a seasoned crypto investor with a knack for spotting promising opportunities, I find Semler Scientific’s (SMLR) recent move to introduce options trading intriguing. With my background in finance and technology, I can appreciate the strategic potential this brings to the table.

In simpler terms, Semler Scientific (SMLR), a smaller medical devices firm, which opted for a Bitcoin reserve approach earlier in the year, has now incorporated options trading as well.

Over the past six months, this stock has been steadily climbing, boosted primarily by the company’s decision to incorporate Bitcoin (BTC) into its treasury strategy, along with ongoing capital increases.

Semler Scientific Options Go Live

In simpler terms, the small-sized medical device firm called Semler Scientific (SMLR) has recently added options trading to their services. Earlier this year, they decided to adopt a Bitcoin storage approach for their assets.

Over the past six months, the company has experienced continuous growth in its share price due to its shift towards Bitcoin (BTC) and ongoing fundraising activities.

Now, Semler Scientific’s stocks can be traded as options, paving a fresh avenue for potential fundraising to acquire even more Bitcoin.

MicroStrategy II $SMLR

— CryptoPiL (@CryptoPiL) December 17, 2024

On December 5, the company submitted an application for options trading, stating they believed they were qualified. Although they haven’t officially announced it yet, a quick look reveals that Semler share options can be found in certain brokerage accounts.

Investment opportunities called options allow individuals to have the privilege, not the requirement, to either purchase or sell a particular stock at a pre-agreed price before a set deadline. Essentially, options trading was initially introduced to give investors effective ways to mitigate risks and guess future market fluctuations.

For a stock to become eligible for options trading, it needs to fulfill certain essential criteria. Typically, these conditions involve a share price ranging from $3 to $5, a market value exceeding $75 million, and daily trading volume between 500,000 to 1 million shares. Moreover, there should be an ample amount of freely-traded shares and a sufficient number of shareholders.

shares of Semler Scientific significantly increased, nearly tripling to close over $74 on Monday, following the company’s announcement on May 28th that they had made their first Bitcoin purchases. The company’s market value now exceeds $600 million, as shares rose by 5% in Tuesday’s pre-market session, trading at $78.20.

$150 Million Stock Offering to Fuel BTC Buys

The business has submitted a second supplement to its S-3 Shelf, increasing the potential shares offered through the ATM program by an additional $50 million. This brings the total offering up to $150 million. To date, Semler has distributed approximately $100 million in proceeds via the ATM issuance.

Through Friday, Semler has invested 168.6 million for 2,084 Bitcoins or at an average cost basis around 81,000/Bitcoin. Its portfolio valued in today’s BTC price near $106,500 stands near $222m. Just on Monday it acquired $21.5 million in BTC.

Semler could consider following in the footsteps of MicroStrategy, a well-known Bitcoin investor, by employing their strategy of issuing convertible notes as a means to gather funds with the aim of increasing Bitcoin holdings. For your information, MicroStrategy recently purchased an additional 15,350 BTC for $15 billion.

Offerings that can be converted make it possible to raise funds without reducing the value of existing shares, which might be more appealing because of this factor. Also, if Semler succeeds in developing an active market for options, this will give investors powerful hedging tools, making convertible notes even more attractive to potential investors.

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2024-12-17 18:28