Semler Scientific Reaches $30 Million Settlement with DOJ, $41.8 Million Bitcoin Impairment Loss in Q1
U.S. medical technology company Semler Scientific disclosed in its latest filing with the SEC that it experienced an impairment loss of approximately $41.8 million on its Bitcoin holdings in the first quarter of 2025. This loss was attributed to a significant decline in Bitcoin prices, falling from $93,500 at the beginning of January to $82,000 on March 31.
Despite the market downturn, as of the first quarter, Semler still holds 3,182 Bitcoins, ranking as the twelfth largest Bitcoin holding company globally. CEO Doug Murphy-Chutorian confirmed that the company will continue to advance its digital asset strategy while focusing on healthcare innovation.
Financially, Semler expects revenue for the quarter to be between $8.8 million and $8.9 million, with operating losses estimated to be between $1.3 million and $1.5 million.
As of March 31, the company had approximately $10 million in cash and cash equivalents and plans to issue up to $500 million in securities for general corporate purposes, including continuing to purchase cryptocurrency. However, market sentiment among investors has been cautious, with the company’s stock (SMLR) down more than 22% since the beginning of the year.
Meanwhile, Semler Scientific announced that it has reached a $30 million principle settlement agreement with the U.S. Department of Justice (DOJ) to resolve long-standing legal disputes and other issues.
The company is prepared to pay approximately $30 million to settle allegations of improper marketing practices related to devices on federal Medicare billings, violating the False Claims Act.
It is reported that the DOJ's civil investigation began in 2017 when the department formally requested a review of potential fraud. While this proposed settlement marks an important step toward resolving the issues, a final agreement is not guaranteed.
Conclusion:
Semler Scientific has faced significant setbacks in cryptocurrency investments due to the sharp decline in Bitcoin prices. However, the company remains committed to advancing its digital asset strategy and plans to continue acquiring cryptocurrency. Meanwhile, the settlement agreement with the DOJ is also expected to bring new opportunities for the company.
Do you continue to have confidence in Semler Scientific's cryptocurrency investments, or are you concerned about its future legal risks?
