Nasdaq-listed Semler Scientific (SMLR) saw its stock price increase by 30% on May 28 after announcing that Bitcoin would be its primary treasury reserve asset. As part of the strategy, the company purchased 581 Bitcoin for a total of $40 million. Semler Scientific’s president, Eric Semler, stated that Bitcoin is their treasury strategy and believes Bitcoin is a reliable store of value and an attractive investment.
Nasdaq-Listed Company Takes a Step into Bitcoin
The executive is also the president of TCS Capital Management, a hedge fund known for activist investment strategies targeting companies like the crowd-sourced review platform Yelp. The fund appears to have no direct or indirect exposure to Bitcoin. Semler said the following about the Bitcoin strategy:
“We believe it has unique properties as a scarce and limited asset that can serve as a reasonable inflation hedge and safe haven amid global instability.”
Semler provides technology devices and software for healthcare providers. According to the latest earnings report, the company generated $15.9 million in revenue in the first quarter of 2024, a 13% decrease compared to the same period last year. However, net income increased by 22% to $6.1 million. As of the end of March, Semler’s balance sheet showed $83.86 million in assets.
Companies Investing in Bitcoin
According to the announcement, the company’s board and senior management have spent significant time evaluating potential uses for cash reserves, including purchasing opportunities. The president continued his statements:
“After reviewing various alternatives, we decided that holding Bitcoin would be the best use of our excess cash. Given the value difference between gold and Bitcoin, we believe Bitcoin has the potential to generate significant returns due to its increasing acceptance as digital gold.”
The largest institutional holder of Bitcoin, MicroStrategy (MRST), also uses Bitcoin as its primary reserve asset. As of March 31, MicroStrategy holds 214,400 Bitcoin worth $13.5 billion, purchased at an average price of $35,180.
