Semler Scientific (NASDAQ: SMLR), Inc. (Nasdaq: SMLR) made a significant announcement today, revealing its decision to adopt bitcoin as its primary treasury reserve asset. In a move that underscores confidence in the cryptocurrency’s value proposition, Semler Scientific disclosed the acquisition of 581 bitcoins, amounting to a total investment of $40 million, inclusive of associated fees and expenses.
Eric Semler, Chairman of Semler Scientific, expressed the company’s rationale behind this strategic shift, stating, “Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment.” Highlighting bitcoin’s emergence as a trillion-dollar asset class, Semler emphasized its unique attributes as a finite asset with potential as an inflation hedge and safe haven in times of global uncertainty. Comparing bitcoin favorably to gold in terms of digital resilience and market value, Semler articulated optimism regarding bitcoin’s potential for significant returns as its adoption grows.
The decision to allocate a portion of its treasury to bitcoin follows an extensive evaluation process by Semler Scientific’s board and senior management. Eric Semler noted, “After studying various alternatives, we decided that holding bitcoin would be the best use of our excess cash.”
Despite this strategic pivot towards cryptocurrency, Semler Scientific remains steadfast in its commitment to its core medical products and services. Doug Murphy-Chutorian, MD, Semler Scientific’s Chief Executive Officer, affirmed the company’s dedication to maintaining sales of its flagship product, QuantaFlo®, for peripheral arterial disease testing. Additionally, Semler Scientific aims to secure FDA clearance for expanded applications of QuantaFlo® in diagnosing other cardiovascular diseases, demonstrating its continued focus on innovation within the healthcare sector.
As Semler Scientific continues to generate revenue and free cash flow, it will actively assess its utilization of excess cash reserves. Bitcoin will assume a central role in Semler Scientific’s treasury holdings, subject to market dynamics and the company’s anticipated cash requirements.
Semler Scientific’s embrace of bitcoin reflects a broader trend of institutional adoption and confidence in the cryptocurrency market, signaling a strategic alignment with emerging financial paradigms while reaffirming its commitment to operational excellence in the healthcare industry.
