Semler Scientific Multiplies Its BTC Purchases, Betting on Bitcoin's Popularity to Revitalize Its Finances

While some predict a bitcoin at 500,000 dollars by 2025, Semler Scientific did not hesitate to invest an additional 23 million dollars in crypto.

Semler Scientific, a company active in health technology, has recently drawn attention by significantly increasing its bitcoin (BTC) purchases, bringing its total cryptocurrency investment to over 192 million dollars.

This move comes amidst a backdrop of rising inflation and a debate over bitcoin's role in hedging against it. While some view the cryptocurrency as a bulwark against inflation, others highlight its volatility and instability.

Semler Scientific, once classified as a “zombie company” due to its minimal debt repayment, has found a path to financial recovery through bitcoin. The company's total reserves now stand at 2,321 BTC, purchased at an average price of less than 83,000 dollars each.

In a bid to finance these substantial purchases, Semler Scientific has sold a portion of its stock, demonstrating its willingness to shift strategies and venture into the realm of cryptocurrency.

However, this approach has sparked questions regarding whether the company is merely attempting to compensate for a lack of liquidity or genuinely betting on bitcoin's popularity.

Semler Scientific's "bitcoin yield" has soared to 99%, a calculation method employed to assess the company's performance in relation to its BTC holdings.

This figure, touted by management, aims to highlight the company's strong performance, which it hopes will pique investors' interest and propel the stock price to new heights.

But as Semler continues to pour vast sums into bitcoin, concerns arise about the sustainability of this approach and whether it will ultimately lead to the company's financial ruin.

Bitcoin's price can fluctuate wildly, sometimes rising or falling by thousands of dollars within a single day. Despite this volatility, Semler Scientific remains undeterred.

The company's leaders point to the growing demand from companies seeking to protect their cash against inflation, which they believe is driving up the price of bitcoin.

They also cite the example of MicroStrategy, a company that began acquiring BTC in 2020 and has since seen its market value soar. For Semler, the speculative appeal of bitcoin seems to outweigh any caution.

This approach has not gone unnoticed by critics, who express concern that a sudden crash in bitcoin's price could severely impact the company's financial health.

Moreover, they argue that it appears to be a high-risk gamble, especially when it comes to acquiring more BTC after a significant rise.

However, Semler views blockchain as a transformative tool for the monetary system and believes that regulators will ultimately exercise caution in the face of this diversification logic.

Meanwhile, other companies, such as Hoth Therapeutics and Rumble, are also turning to bitcoin in an effort to boost their image and attract new investors.

This trend showcases the growing mainstream acceptance of cryptocurrency, which is no longer limited to the realm of tech giants.

By aligning itself with this movement, Semler aims to reassure its partners and demonstrate its ability to anticipate market developments, despite the recent comparison made by the CEO of JPMorgan.