Semler Scientific Files to Issue $500M in Securities Following $30M DOJ Settlement

Semler Scientific has filed with the U.S. Securities and Exchange Commission (SEC) to issue $500 million in securities. This move follows the company’s announcement of a $30 million settlement with the Department of Justice (DOJ).

Semler Scientific is preparing to pay $29.75 million to the Department of Justice (DOJ) to settle claims related to the marketing of its flagship product, QuantaFlo.

The company’s intentions to purchase more Bitcoin have also been revealed. Semler Scientific has filed with the U.S. Securities and Exchange Commission (SEC) to issue $500 million in securities.

Semler Tentatively Agrees to Pay $30 Million to DOJ to Settle Claims

Semler Scientific has reached a tentative agreement with the DOJ to pay $29.75 million and settle claims. The claims focus on alleged violations of federal anti-fraud laws in connection with the company’s promotion of its flagship product, QuantaFlo.

The DOJ’s investigation began in 2017, and over the past few months, Semler has been engaged in discussions with the DOJ to resolve the matter. Semler has cooperated with several subpoenas from the DOJ throughout the years, which ultimately led to the current settlement negotiations.

In its Tuesday filing with the SEC, Semler noted that the agreement is still subject to approval by the presiding judge in the case.

If the agreement is approved, Semler plans to use a loan from Coinbase, secured by its Bitcoin holdings, to fund the $30 million payment. Semler currently holds 3,192 BTC, which is valued at approximately $267 million at press time.

Semler will take out a cash and digital asset loan from Coinbase, one of the largest cryptocurrency exchanges.

The crypto-based loan from Coinbase will ensure Semler has a $30 million balance to pay the DOJ quickly without straining its balance in other aspects of its operations.

Semler to Further Diversify Cryptocurrency Holdings

Semler’s intent to purchase more Bitcoin comes as it also tries to diversify its cryptocurrency holdings. The company disclosed that it has submitted an S-3 to the SEC for the registration statement.

This filing is in preparation for the company’s planned offering of up to $500 million in securities. The proceeds from this selling will increase the company’s Bitcoin holdings.

Semler’s intentions of acquiring more Bitcoin come simultaneously with those of other firms, such as Michael Saylor’s Strategy (NYSE:COIN), which also accumulates the cryptocurrency.

Just recently, Strategy bought 3,459 bitcoins for $285.8 million, and thus, it is now holding 531,644 bitcoins.

Similarly, Metaplanet has bought $26.3m worth of Bitcoins, demonstrating that the firm remains bullish in this market volatility. These purchases come in light of a potential reversal in the Bitcoin price that some analysts, such as the Titan of Crypto, have estimated to hit $137,000.