Semler Scientific Files for $500 Million Raise to Fuel Bitcoin Investment Strategy

Semler Scientific, a healthcare tech firm, goes full steam forward with its Bitcoin technique. The corporate has filed a brand new S-3 registration with the SEC, signaling plans to boost to $500 million. This capital increase would come by quite a lot of securities like frequent inventory, debt, and warrants. Whereas the funds might be used for common company functions, the corporate clearly acknowledged {that a} portion will go towards shopping for extra Bitcoin.

Already a Main Bitcoin Holder

Semler is just not new to crypto; they already personal 3,192 BTC and has been steadily rising its stash. Again in February, the corporate added 871 BTC for $88.5 million, paying a mean of over $101,000 per coin. That adopted a separate $30 million buy late final 12 months. Regardless of Bitcoin’s current dip beneath $99,000, Semler seems dedicated to its long-term crypto technique.

Semler Scientific CEO Eric Semler claims he’s “excited to purchase extra BTC.” 

Bitcoin as a Company Lifeline

Notably, this shift is greater than the funding technique, it’s half of a bigger turnaround story. Earlier than adopting its Bitcoin treasury technique in Might 2024, Semler was seen as a stagnant wealthy public firm with strong money reserves however poor inventory efficiency. Now, with one of many largest BTC holdings amongst public corporations, it’s reinventing itself. The agency believes Bitcoin isn’t just a hedge towards inflation however a protected haven throughout instances of world uncertainty.

Dealing DOJ Settlement

On the similar time, the corporate is navigating a serious authorized hurdle. Semler not too long ago reached a tentative $29.75 million settlement with the Division of Justice over allegations tied to the way it marketed its QuantaFlo product. To repay this settlement, the corporate plans to borrow from Coinbase and use its Bitcoin holdings as collateral. It would additionally faucet into its current money available to cowl a part of the price.

Nonetheless a Excessive-Danger Technique

Even with its daring Bitcoin stance, Semler’s inventory hasn’t seen the enhance you’d count on. The share worth has fallen 37% to this point this 12 months. Nonetheless, the corporate is standing agency on its perception that Bitcoin is a long-term asset value holding. By persevering with to construct its crypto portfolio and reshaping the way it does enterprise, Semler is clearly betting that this high-stakes technique will finally repay.