Semler Scientific, a healthcare technology company that you may not think of as in the Bitcoin world, has made several big changes — once more.
The week before, Semler submitted plans to the SEC to launch a huge offering of securities worth $500 million. The aim? Fundraising for general operation, future investment projects, and – yesto purchase more Bitcoin.
Let’s look at it in detail.
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A Bitcoin-powered strategy
Then, in May 2024, Semler changed gears when it adopted Bitcoin as an element of its treasury plan. Since then, it has amassed more than 3,192 BTC, which makes it the 12th biggest public corporation with a stake in Bitcoin as per Bitcoin Treasuries.
Then we come to the present, Semler’s most recent filing shows that the company is looking to increase this position. Although it’s not clear the amount of BTC will be purchased in the future, it’s evident that Bitcoin is a part of a longer-term plan.
The firm’s S-3 document states that: Bitcoin is a “reliable storage of value,”” it is a “compelling investment” as well as it’s a “reasonable inflation hedge” due to its limited supply.
Then What’s In This 500 Million Dollar Offering?
This filing is known as a shelf registration’s essentially a framework that permits Semler to issue different types of securities (common debt, stock, and preferred stock) in the future, with the amount of $500 million.
The funds will go towards:
- General corporate expenses
- Working capital
- R&D and investment in health tech
- Of course… Bitcoin accumulation
Oh, and there’s a DOJ Settlement
In a separate announcement on the same day, Semler disclosed that it has agreed to a preliminary $29.75 million agreement with the Department of Justice. The settlement stems from accusations about the way it promoted the QuantaFlo heart disease prevention product.
To pay for the expense, the company is planning to take loans the funds from Coinbase and use some of the company’s Bitcoin for collateral. Along with the existing cash reserves, it could aid in financing the settlement without having to stop activities.
It was a great time to be there: 4 days before the talks to settle started in February, Semler purchased an additional $88 million worth of Bitcoin. Semler says it’s earned a return of 152% from its Bitcoin assets up to now.
“Zombie company” To Crypto Convert
The chairman, Eric Semler, has previously called the business as a “zombie” that is successful, widely traded; however, it was stuck with a sluggish stock portfolio and inactive money. The situation changed after Bitcoin was introduced.
Now? Bitcoin helps Semler to tell a new tale. A bold approach to treasury control, unpredictability, and the possibility of high returns.
But it’s not easy running. Since the beginning of 2018, Semler’s stock ($SMLR) has dropped around 37%. At present, it’s being traded at $34.40.
What’s Next?
Between the Bitcoin game and the agreement with the DOJ, Semler is in an unusual position in the middle of cryptocurrency and healthcare innovations.
If this investment pays off in the long run is yet to be determined. However, one thing is for certain: Semler isn’t just dipping its feet into cryptocurrency -It’s leaping headfirst into the depths.
