Semler Scientific, Inc. (Nasdaq: SMLR), a firm focused on developing and marketing technology products and services to healthcare providers to combat chronic diseases, announced today that its board of directors has adopted bitcoin as its primary treasury reserve asset.
In addition, Semler Scientific announced that it “has purchased 581 bitcoins for an aggregate amount of $40 million, inclusive of fees and expenses.”
Eric Semler, Semler Scientific’s chairman said:
“Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment. Bitcoin is now a major asset class with more than $1 trillion of market value. We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability. We also believe its digital, architectural resilience makes it preferable to gold, which has a market value of approximately 10 times that of bitcoin. Given the gap in value between gold and bitcoin, we believe that bitcoin has the potential to generate outsize returns as it gains increasing acceptance as digital gold.
Mr. Semler added:
“Furthermore, we are energized by the growing global acceptance and ‘institutionalization’ of bitcoin — reflected most recently by the Securities and Exchange Commission’s January 2024 approval of 11 bitcoin exchange-traded funds. These funds have reported more than $13 billion of net inflows, with investments from nearly 1,000 institutions, including global banks, pensions, endowments and registered investment advisors. It is estimated that more than 10% of all bitcoins are now held by institutions.”
Semler Scientific’s board and senior management have spent substantial time examining potential uses of cash, including acquisitions.
Mr. Semler also mentioned:
“After studying various alternatives, we decided that holding bitcoin would be the best use of our excess cash.”
In conjunction with its bitcoin treasury strategy, Semler Scientific will continue to focus on its core medical products and services.
Doug Murphy-Chutorian, MD, Semler Scientific’s chief executive officer said:
“We remain dedicated to our customers and our goal of operating a growing and profitable healthcare company. We are focused on maintaining sales of QuantaFlo® for peripheral arterial disease testing, while seeking a new 510(k) clearance from the FDA with expanded labeling for use as an aid in the diagnosis of other cardiovascular diseases.”
As Semler Scientific continues to generate revenue and free cash flow “from sales of QuantaFlo, it will proactively evaluate its use of excess cash.”
Bitcoin will serve as Semler Scientific’s principal treasury holding “on an ongoing basis, subject to market conditions and the anticipated cash needs of Semler Scientific.”
