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Cryptocurrency News Articles
Semler Scientific Bets Big on Bitcoin and Sees Its Returns Explode
Feb 05, 2025 at 12:05 am
The medical technology company Semler Scientific (NASDAQ: SMLR) continues its aggressive bitcoin investment strategy with the acquisition of an additional
Medical technology company Semler Scientific (NASDAQ: SMLR) is continuing its aggressive bitcoin investment strategy, having acquired an additional 871 BTC, bringing its total portfolio to 3,192 BTC. This move comes as cryptocurrency markets experience volatility and institutional adoption.
Semler Scientific bets big on Bitcoin and sees its returns explode
Semler Scientific made the announcement on February 4, 2025, revealing that it had acquired the new bitcoins in a bid to capitalize on the rising digital asset prices. The company purchased the bitcoins at an average price of $101,616 each, with the total investment reaching $88.5 million.
To finance this operation, Semler Scientific carried out two capital transactions. The first involved issuing convertible bonds, while the second entailed selling a portion of its shares in Monarch Medical Technologies.
With this new acquisition, Semler Scientific now boasts a total of 3,192 bitcoins, which were acquired at an average price of $87,854 per unit, for a cumulative investment of $280.4 million. Notably, this bitcoin position now constitutes a significant portion of the company's total market capitalization, which currently stands at $484.2 million.
Emphasizing the strong interest from investors in the issuance of convertible bonds, Eric Semler, president of Semler Scientific, stated, “We are very pleased with the increase in our bitcoin position.”
This strategy has proven to be highly lucrative, with a return of 152.2% since July 2024. With 3,192 BTC in its portfolio, the bitcoin investment now spans more than half of the company's market capitalization, valued at $484.2 million. A major transformation for this company specializing in medical technologies.
A strategic shift that raises questions
While Semler Scientific's bitcoin strategy has garnered attention for its impressive returns, it also raises questions. The company's pivot into the cryptocurrency market has led to a substantial increase in the number of shares, which have risen from 8.086 to 11.672 million in seven months. This ultimately translates to a significant dilution for shareholders.
This announcement coincides with the first pause in purchases in 12 weeks by MicroStrategy (NASDAQ: MSTR), the largest institutional holder of bitcoin with 471,107 BTC. This halt comes amid volatility, as bitcoin trades below $100,000 after its all-time highs, following the trade tensions initiated by Donald Trump with China, Mexico, and Canada.
Collectively, these developments underscore the growing trend of companies adopting bitcoin as a store of value. In the case of Semler Scientific, its holdings of the cryptocurrency now play a central role in its overall value proposition, fundamentally altering its identity within the medical technology industry.
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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
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