Semler Scientific Announces Additional Bitcoin Purchases

Rhea-AI Summary

Semler Scientific (Nasdaq: SMLR) has announced the purchase of an additional 83 bitcoins for $5.0 million in cash, including fees and expenses. As of August 26, 2024, the company now holds a total of 1,012 bitcoins, acquired for a cumulative $68.0 million. Eric Semler, chairman of Semler Scientific, stated that the purchase was made using primarily cash from operations and capital raised through their at-the-market equity program.

The company expressed optimism about the growing institutional adoption of bitcoin, noting that institutions now own more than 20% of bitcoin ETF assets under management. Semler believes this increasing institutionalization will drive value for both bitcoin prices and their stockholders.

Positive

• Acquired 83 additional bitcoins for $5.0 million, increasing total holdings to 1,012 bitcoins
• Used cash from operations and at-the-market equity program for bitcoin purchase, indicating financial flexibility
• Potential for increased value due to growing institutional adoption of bitcoin

Negative

• Significant cash allocation ($68.0 million total) to a volatile asset like bitcoin may pose financial risks
• Potential dilution of shareholder value due to capital raised through at-the-market equity program

Insights

Financial Analyst

Semler Scientific's additional Bitcoin purchase of $5.0 million brings their total holdings to 1,012 bitcoins, acquired for $68.0 million. This significant investment represents a substantial portion of the company's assets, given their last reported cash position of $94.9 million as of March 31, 2024.

The company's strategy of using operational cash flow and equity raises for cryptocurrency investments is unconventional for a healthcare technology firm. While it may provide potential upside if Bitcoin appreciates, it also exposes shareholders to significant volatility and risk. The average purchase price of $67,194 per Bitcoin is notably higher than current market prices, indicating potential unrealized losses.

Investors should carefully consider the implications of this non-core business strategy on Semler's financial stability and future growth prospects in its primary healthcare technology markets.

Cryptocurrency Expert

Semler's Bitcoin acquisition strategy aligns with a growing trend of corporate treasury diversification into digital assets. The company's bullish stance on Bitcoin, citing increasing institutional adoption, reflects a broader market sentiment.

However, the timing of these purchases is crucial. With Bitcoin prices currently below Semler's average purchase price, the company faces unrealized losses. The 20% institutional ownership of Bitcoin ETF assets, while significant, doesn't necessarily guarantee future price appreciation.

Semler's aggressive Bitcoin accumulation strategy, especially for a company outside the financial sector, carries substantial risks. Shareholders should be aware that this approach ties the company's fortunes closely to the highly volatile cryptocurrency market, potentially overshadowing its core healthcare technology business.

Healthcare Technology Analyst

Semler Scientific's substantial Bitcoin investment raises concerns about its focus on its core business of developing healthcare technology solutions. While the company claims to use "primarily cash from operations" for these purchases, this allocation of resources could potentially divert funds from R&D, product development, or market expansion in the healthcare sector.

The company's primary mission of combating chronic diseases through technology seems at odds with this cryptocurrency investment strategy. Shareholders and potential investors should question whether this shift in focus might impact Semler's competitive position in the healthcare technology market. There's a risk that the company's Bitcoin holdings could overshadow its fundamental business performance and growth prospects in its core market.

SANTA CLARA, Calif., Aug. 26, 2024 /PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases, today announced that it has purchased an additional 83 bitcoins for $5.0 million in cash, inclusive of fees and expenses. As of August 26, 2024, Semler Scientific holds a total of 1,012 bitcoins, which were acquired for $68.0 million, inclusive of fees and expenses.

"We recently purchased additional bitcoins using primarily cash from operations as well as capital raised through our at-the-market equity program," said Eric Semler, chairman of Semler Scientific. "We are encouraged by the growing institutional adoption of bitcoin. It was recently reported that for the first time, institutions own more than 20% of bitcoin ETF assets under management. We believe this increasing institutionalization will drive value for both bitcoin prices and for our stockholders."

About Semler Scientific, Inc.:

Semler Scientific, Inc. develops, manufactures and markets innovative products and services to combat chronic diseases. Its flagship product, QuantaFlo®, which is patented and cleared by the U.S. Food and Drug Administration (FDA), is a rapid point-of-care test that measures arterial blood flow in the extremities. The QuantaFlo test aids in the diagnosis of cardiovascular diseases, such as peripheral arterial disease (PAD), and Semler Scientific is seeking a new 510(k) clearance for expanded-indications. QuantaFlo is used by healthcare providers to evaluate their patient's risk of mortality and major adverse cardiovascular events (MACE). Semler Scientific also invests in bitcoin and has adopted bitcoin as its primary treasury asset. Additional information about Semler Scientific can be found at www.semlerscientific.com.

Forward-Looking Statements

This press release contains "forward-looking" statements. Such statements can be identified by, among other things, the use of forward-looking language such as the words "believe," "goal," "may," "will," "intend," "expect," "anticipate," "estimate," "project," "would," "could" or words with similar meaning or the negatives of these terms or by the discussion of strategy or intentions. The forward-looking statements in this release include express or implied statements regarding the increasing institutionalization of bitcoin; bitcoin prices; effects of same for its stockholders; and expanding indications for QuantaFlo; among others. Such forward-looking statements are subject to a number of risks and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, such as risks inherent with investing in bitcoin, including bitcoin's volatility; risk of implementing a new bitcoin treasury strategy; and risks of obtaining an additional 510(k) clearance; along with those other risk factors detailed in Semler Scientific's filings with the Securities and Exchange Commission. These forward-looking statements involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.

CONTACT:

Renae Cormier, CFO
ir@semlerscientific.com

 

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SOURCE Semler Scientific, Inc.

FAQ

How many bitcoins did Semler Scientific (SMLR) purchase in its recent acquisition?

Semler Scientific (SMLR) recently purchased 83 additional bitcoins for $5.0 million in cash, inclusive of fees and expenses.

What is the total number of bitcoins held by Semler Scientific (SMLR) as of August 26, 2024?

As of August 26, 2024, Semler Scientific (SMLR) holds a total of 1,012 bitcoins.

How much has Semler Scientific (SMLR) invested in bitcoin acquisitions in total?

Semler Scientific (SMLR) has invested a total of $68.0 million in bitcoin acquisitions, inclusive of fees and expenses.

What percentage of bitcoin ETF assets are now owned by institutions, according to Semler Scientific's announcement?

According to Semler Scientific's announcement, institutions now own more than 20% of bitcoin ETF assets under management.