Semler Scientific Adds $5 Million Worth Of Bitcoin To Its Holdings

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As a seasoned researcher with years of experience observing financial markets and their trends, I find myself intrigued by the growing number of companies like Semler Scientific embracing Bitcoin as part of their treasury assets. Having witnessed the rapid evolution of technology and finance over the past decade, I can confidently say that we are living in a time where digital currencies are increasingly becoming mainstream.

The publicly traded company, Semler Scientific, revealed they bought approximately 83 Bitcoin, which amounted to about $5 million. This acquisition increased their overall crypto holdings to a total of 1,012 Bitcoins, which they acquired for around $68 million.

Semler Scientific Adds More BTC To Its Balance Sheet

It seems that, taking a cue from MicroStrategy’s approach, Semler Scientific has purchased an extra 83 Bitcoin valued at approximately $5 million, considering transaction costs and fees. This action underscores the growing trend of corporations including Bitcoin in their financial assets as part of their treasury holdings.

Commenting on the acquisition, Eric Semler, chairman of Semler Scientific noted:

Lately, we’ve bought more bitcoins mainly with cash earned from our business activities and funds raised through our equity program. We’re optimistic about the rising trend of institutions adopting bitcoin. Notably, it was disclosed that for the first time, these institutions hold over 20% of the assets managed by Bitcoin ETFs. We anticipate this growing institutional involvement will boost both the value of bitcoins and our shareholders’ benefits.

To put it simply, back in May 2024, Semler Scientific made Bitcoin a part of their financial holdings by acquiring 654 Bitcoins for approximately $40 million. At that point, they declared that they consider Bitcoin, the leading cryptocurrency by market value, as their main treasury asset.

In June 2024, Semler Scientific acquired 247 Bitcoins, committing a sum of $17 million towards the top-tier digital currency. Simultaneously, they unveiled their intention to secure an additional $150 million to expand their Bitcoin holdings.

Additionally, the company increased its Bitcoin holdings by an extra $6 million worth of Bitcoins, amounting to 101 coins, this month. This recent acquisition underscores Semler Scientific’s belief in Bitcoin as a long-term investment for their treasury. However, the price of Bitcoin has remained relatively stable since the announcement of this latest purchase.

Semler Scientific Adds $5 Million Worth Of Bitcoin To Its Holdings

Increased Institutional Interest In Bitcoin and other Cryptocurrencies

Based on information from CoinGecko, approximately 29 publicly listed companies around the globe collectively hold over 320,000 Bitcoins as part of their corporate reserves. It’s no wonder that MicroStrategy, with its control over 225,000+ Bitcoins valued at over $14 billion, tops the list.

As a researcher exploring the dynamics of Bitcoin, I’ve uncovered an intriguing fact: Companies like Galaxy Digital Holdings, Tesla, and Coinbase are among the 29 entities that collectively hold over 1.6% of all existing Bitcoins. This substantial ownership serves as a testament to the burgeoning trust in Bitcoin as a resilient asset for hedging against inflation, particularly in light of currency devaluation due to debasement.

Based on predictions from significant figures on Wall Street like Goldman Sachs, this trend with Bitcoin is likely to persist. Moreover, the recent green light given to Bitcoin-centric exchange-traded funds (ETFs) implies that regulatory endorsement for the leading digital currency is now a strong possibility.

Approval of a crypto-based ETF appears to have a ripple effect on major digital currencies. As an example, institutional attention towards Solana (SOL), currently the fifth largest cryptocurrency by market capitalization, has grown significantly over the past few months.

Even under unfavorable market circumstances, there has been a significant surge of interest in Ethereum-backed ETFs in the United States over the past few months, with approximately $98 million flowing into these funds.

From January 2024 onwards, Bitcoin ETFs have amassed nearly $18 billion in earnings. Yet, even with their remarkable performance, some institutional investors hold reservations, suspecting that much of the appeal stems primarily from individual or retail investors.

As a result of the US Federal Reserve lowering interest rates starting from September 2024, which brings about shifts in the broader economic landscape, there might be a resurgence of institutional investment in the virtual currency known as the “orange coin.”

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2024-08-27 08:12