Semler Scientific Inc., a medical device company, has made a bold move by investing a large portion of its cash reserves in Bitcoin (BTC), a move that has sent its stock price soaring.
According to Bloomberg, the San Jose, California-based company purchased 581 bitcoins, spending a total of $40 million including fees and expenses.
Semler Scientific Moves Cash Reserves into Bitcoin
With this purchase, Semler Scientific joins a handful of public companies that have embraced Bitcoin as a primary financial reserve asset, following the lead of enterprise software company MicroStrategy.
According to the report, Eric Semler, chairman of Semler Scientific, said the decision reflects the company’s belief in Bitcoin’s potential as a “reliable store of value” and a “compelling investment.”
Semler also pointed out that Bitcoin, as a scarce and limited asset, has unique properties that make it a reasonable inflation hedge and a safe haven in global instability. He also mentioned that Bitcoin's digital and architectural resilience gives it an advantage over gold, even though gold's market value is about 10 times that of Bitcoin.
As of March 31, 2024, Semler Scientific had $62.9 million of excess cash, which had previously been held in non-interest bearing bank accounts, Treasury securities and government money market funds.
Semler added that after researching various alternatives, the company decided that holding Bitcoin was the best use of its excess cash. The company remains committed to its core medical products and services, but also believes that the strategy of purchasing Bitcoin can create long-term value for shareholders.
Semler Scientific shares surge 36% on BTC reserve news
The decision has reportedly already yielded initial results, with Semler Scientific’s stock price surging 36% to $31.61 per share on the news, increasing its market value to approximately $220 million. This is in stark contrast to the stock’s nearly 50% year-to-date decline prior to the Bitcoin announcement.
Semler Scientific’s decision echoes the approach of MicroStrategy, which has become one of the largest corporate holders of cryptocurrency. MicroStrategy’s bitcoin holdings now exceed $10 billion, with the company funding purchases through cash flow, equity and debt sales.
Semler Scientific said that as the company continues to generate revenue and free cash flow from its medical products, it will regularly evaluate the use of its excess cash, including possible further investment in Bitcoin or other "strategic initiatives."
Conclusion:
Semler Scientific's decision to include Bitcoin in its financial reserve assets demonstrates confidence in the potential of cryptocurrencies and has had a positive effect of soaring stock prices. This move not only reflects the company's view on Bitcoin as a long-term value creator, but also demonstrates a strategy to cope with global economic uncertainty.
As Semler Scientific continues to evaluate the best use of its funds, the addition of Bitcoin opens up new possibilities for the company’s future growth. #比特币投资 #财务储备资产