Semler Scientific Expands Bitcoin Holdings by 215 BTC, Raises $21.5 Million in Equity Offering

Semler Scientific, a healthcare-focused company known for its medical equipment and diagnostic solutions, has significantly increased its Bitcoin holdings, now totaling $114 million. The move is part of its broader strategy to use Bitcoin as a reserve asset to hedge against inflation and market volatility.

New Bitcoin Purchases and Strategy

Between November 6 and November 15, 2024, Semler acquired an additional 215 Bitcoin for $17.7 million, at an average price of $82,502 per Bitcoin. This latest purchase brings Semler’s total Bitcoin holdings to 1,273 BTC, with an average cost of $69,682 per coin, amounting to a total investment of $88.7 million.

At the time of writing, Bitcoin is trading at $90,400, marking a gain in the value of Semler’s Bitcoin holdings since their most recent purchase.

Growth in Stock Price

Semler’s Bitcoin strategy first came into the spotlight in May 2024 when the company made its initial large purchase of 581 Bitcoin for $40 million. This move resulted in a 25% surge in Semler’s stock price, as investors reacted positively to the company’s shift into digital assets, viewing Bitcoin as a potential inflation hedge and store of value due to its limited supply and resilience.

Equity Offering and Funding

In addition to expanding its Bitcoin portfolio, Semler raised $21.5 million through an at-the-market (ATM) offering. The company sold 505,544 shares under its Controlled Equity Offering agreement with Cantor Fitzgerald. This capital will be used to fund future Bitcoin acquisitions as well as support the company’s other operational needs.

BTC Yield Metric

Semler has developed a unique metric called “BTC Yield” to track the performance of its Bitcoin strategy. BTC Yield measures the ratio of the company’s Bitcoin holdings to its diluted shares outstanding, providing a way to assess the effectiveness of its Bitcoin treasury strategy.

From October 1 to November 15, 2024, Semler reported a BTC Yield of 18.9%. From July 1 to November 15, 2024, the figure reached 37.3%. However, the company has cautioned that BTC Yield is not a traditional financial metric and should be viewed as one of several factors when evaluating the success of its Bitcoin reserve strategy.

Future Plans and Bitcoin as a Reserve Asset

Semler’s Bitcoin purchases reflect the company’s long-term belief in the cryptocurrency as a store of value. With inflation concerns and the evolving economic landscape, the company sees Bitcoin as a strategic asset to complement its traditional business operations.

While Semler’s core focus remains healthcare, the growing trend of corporates adding Bitcoin to their balance sheets is evident. The company’s approach mirrors that of other forward-thinking businesses leveraging Bitcoin for its unique properties as an inflation hedge and secure store of value.