#SemlerScientific , a medical device company, has just announced plans to raise $75 million through convertible bonds to continue investing in Bitcoin. However, the company’s stock has sharply decreased over the past two days, raising questions among investors about this bold strategy.
Details of the Capital Raising Plan
Amount raised: $75 million through convertible bonds, maturing in 2030, with an annual interest rate of 4.25%.
Purpose: To purchase additional $BTC to strengthen the long-term investment strategy.
Currently, Semler holds 2,321 BTC, with unrealized profits reaching $28.9 million. On January 13 alone, the company purchased an additional 237 BTC, increasing the total value of Bitcoin held to $241 million (based on a price of $105,000/BTC).
Strong Confidence in Bitcoin
Semler entered the Bitcoin market in May 2024, buying 581 BTC for the first time, causing the stock to soar by 30%. CEO Doug Murphy-Chutorian has repeatedly affirmed that Bitcoin is the company's long-term investment focus.
The milestone of Bitcoin reaching a new peak of $109,000 in January 2025 further reinforces this confidence, especially as this digital currency receives strong support from politicians like President Donald Trump.
SMLR Stock "Crashed"
Although the Bitcoin investment strategy previously helped Semler's stock increase nearly 40% in the past year, the current price has dropped significantly.
January 23: Shares fell 2% after the bond issuance announcement.
The next two days: Price dropped another 10%, down to $55.46, significantly lower than the peak of $149.99 in 2021.
Overall Trend: Many Companies Pursuing Bitcoin
Semler is not alone in the race to accumulate Bitcoin:
MicroStrategy: The giant holds 461,000 BTC, worth about $48 billion, and aims to raise an additional $42 billion for further investment.
Other companies like Hoth Therapeutics, Genius Group, and Rumble also place their trust in Bitcoin as a strategic asset.
Conclusion: Long-term Steps or Short-term Risks?
Semler's continuous investment in Bitcoin shows strong confidence in the potential of this digital asset. However, the decline of stock #SMLR serves as a reminder that the market still harbors many risks.
Warning: Investing in crypto or Bitcoin-related stocks can be highly volatile. Consider carefully before participating and only use capital you can afford to lose!