Just In: Semler Scientific Acquires More Bitcoin For $21.5 Million

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As a seasoned analyst with over two decades of experience in the financial market, I find Semler Scientific’s (SMLR) strategic move to expand its Bitcoin holdings intriguing. With my extensive background in analyzing various industries and investment trends, I can confidently say that this decision aligns with the growing trend of companies viewing cryptocurrencies as a valuable part of their financial strategies.

Semler Scientific, Inc., a business specialized in technological solutions for long-term illnesses, disclosed changes in their cryptocurrency acquisition activities by revealing they purchased approximately $21.5 million in Bitcoin. In addition to this, the company has revised its capital markets strategy and key performance indicators (KPIs).

This year, the company chose to strengthen its role in cryptocurrencies even more, making them a significant element in its overall financial approach, by incorporating Bitcoin (BTC) into its treasury strategy.

Semler Scientific (SMLR) Expands Bitcoin Holdings and Updates ATM Offering

Semler Scientific, Inc., a company specializing in tech solutions for managing long-term illnesses, has shared new details about their Bitcoin procurement approach; they have purchased approximately $21.5 million worth of Bitcoin.

Eric Semler, as head of Semler Scientific’s Board of Directors, announced that the firm had purchased a total of 211 Bitcoins. The cost of these bitcoins was around $21.5 million, with an average price of $101,890 per Bitcoin.

Beginning in May 2024, Semler Scientific implemented its new strategy, resulting in a quarter-to-date BTC Yield of 67.0% and an overall yield of 92.8%. As of December 15, 2024, the company possesses 2,084 Bitcoins, which were acquired for approximately $168.6 million at an average price point of about $80,916 per Bitcoin.

Semler Scientific purchased 211 Bitcoins for approximately $21.5 million, with each Bitcoin costing around $101,890. This move has produced a quarter-to-date BTC yield of 67.0% and a yield of 92.8% since implementing our Bitcoin treasury strategy in May. As of December 15, 2024, we hold 2,084 Bitcoins, which were acquired for approximately $168.6 million, with each Bitcoin costing around $80,916. The ticker symbol for Semler Scientific is SMLR.

— Eric Semler (@SemlerEric) December 16, 2024

On December 16, 2024, Semler Scientific expanded the number of shares it could offer through its ATM program by an additional $50 million, bringing the total potential to $150 million. Previously, the company had already raised a gross total of $100 million by selling shares up until December 13.

In comparison to MicroStrategy, SMLR’s strategy aligns, but it operates on a more limited scale. It’s important to note that MicroStrategy recently acquired approximately 15,350 Bitcoins valued at about $1.5 billion.

In simpler terms, SMLR has increased its fundraising capacity by entering into a Controlled Equity Offering contract with Cantor Fitzgerald & Co. This means that the company now has the ability to offer and sell its common shares through an on-going public offering.

BTC Yield as a Performance Indicator

Semler Scientific seems dedicated to increasing shareholder profits by employing its Bitcoin savings approach, as demonstrated in their latest financial statement and press release. The core of this tactic revolves around the “BTC Yield,” a significant performance benchmark. This Key Performance Indicator (KPI) calculates the percentage fluctuations in Bitcoin assets compared to Semler Scientific’s issued share count. It serves to evaluate how effectively this strategy boosts stockholder earnings.

In Quarter 4 of 2024, Semler disclosed a Bitcoin Return on Investment (Yield) of 67%, and a total return since implementing the strategy in Quarter 3 amounted to 92.8%. The Bitcoin Yield quantifies fluctuations in the proportion of Bitcoin holdings compared to the estimated fully diluted number of shares outstanding. This calculation factors in all stock options, yet it disregards vesting requirements and exercise fees.

The firm showcases BTC Yield as a means for investors to assess how the funds obtained from stock transactions are utilized to purchase Bitcoins.

Looking Ahead

Semler Scientific continues to pursue two primary tactics: acquiring funds via stock issues and allocating those resources towards Bitcoin investments. They also assert that the use of cryptocurrencies significantly contributes to enhancing shareholder worth.

In addition to itself, other entities are also adopting a Bitcoin-centric treasury approach. Last week, the prominent crypto mining company, Riot Platforms Inc., boosted its digital asset portfolio substantially by purchasing 5,113 Bitcoins at around $510 million. This move strengthens its status as a significant player in both Bitcoin mining and investment realms.

This action by SMLR, a U.S.-based company, further demonstrates that cryptocurrencies are becoming more accepted as corporate investments. Although SMLR doesn’t have the same currency hurdles, its decision underscores a growing trend among businesses to view Bitcoin as a crucial financial resource.

The company’s BTC Yield metric provides some insight into this approach, but the ultimate success of these investments is closely tied to Bitcoin’s volatility and its integration into larger financial markets over the long term.

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2024-12-16 17:30