Semler Scientific – a Nasdaq-listed healthcare technology company – is stirring up the financial and cryptocurrency community with plans to raise up to $500 million to purchase more Bitcoin, despite recently reaching a $29.75 million settlement agreement with the U.S. Department of Justice (DOJ).



Raising capital to buy Bitcoin: Long-term plan


In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Tuesday, it announced a 'shelf offering' plan – a type of registration that allows the company to flexibly issue various securities such as common stock, preferred stock, bonds, warrants, and units over a certain period.


The goal for using the capital is clearly stated:



"Primarily for the company's general operations, including purchasing more Bitcoin."



Although it has not disclosed the specific amount of BTC it will buy, Semler's focus on Bitcoin in its financial strategy indicates a strong commitment to this digital asset.




This information was released in parallel with another filing, showing that Semler has reached a preliminary agreement worth $29.75 million with the U.S. Department of Justice to settle allegations of violating federal fraud laws related to the marketing of QuantaFlo products.


Noteworthy:



  • Semler announced it will borrow from Coinbase to pay this amount.



  • At the same time, it will use existing Bitcoin as collateral for the loan.



  • Existing cash will also be used to handle the case.




This is one of the rare cases where a listed company uses Bitcoin as a financial leverage in legal operations – proving that BTC has become a highly liquid and valuable asset in the eyes of businesses.



From 'zombie company' to Bitcoin treasury strategy


Semler Scientific began its Bitcoin accumulation strategy in May 2024. Previously, the company's president – Eric Semler – admitted that despite being profitable and listed, the business had been 'treading water' for many years, causing the stock to lose its appeal in the market.


In just two months after this strategy, Semler has increased its total Bitcoin holdings to 3,192 BTC, including an $88 million purchase in February – a move confirmed by the company to yield profits of up to 152%.


Currently, Semler ranks 12th globally among public companies holding the most Bitcoin, according to data from Bitcoin Treasuries.



Bitcoin – the new 'safe haven' for traditional businesses?


In the latest S-3 prospectus, Semler asserts:



"Bitcoin is a finite, scarce asset that can serve as a hedge against inflation and a safe haven amidst global uncertainty."



The company believes that investing in Bitcoin is not only a financial risk mitigation solution but also a long-term value creation strategy as the world enters a period of economic and monetary instability.



SMLR shares have not recovered, but is the crypto market benefiting?


Currently, Semler's SMLR shares are down about 37% year-to-date, to $34.40. However, the crypto market is reacting positively to the news that a traditional healthcare company continues to bolster its reserves.


The plan to issue $500 million in bonds and stocks to accumulate Bitcoin could create additional buying pressure in the market, especially as the supply of BTC becomes increasingly scarce after the Halving.



Conclusion: 'Zombies' do not die, but are revived thanks to Bitcoin


Semler Scientific is a living proof that shifting to a Bitcoin strategy can help traditional companies turn around. Despite still facing legal issues and the stock price not recovering, the commitment to BTC is helping Semler rebuild market trust – especially as digital assets are increasingly recognized.



Risk warning: The cryptocurrency market is highly volatile and not suitable for all investors. This article is not investment advice. Always consider carefully before making financial decisions.