Semler Scientific buys $17M Bitcoin, plans $150M fundraise for more BTC acquisition

Medical device maker Semler Scientific is doubling down on its move to pivot towards Bitcoin as its treasury reserve asset with additional purchases of the flagship digital asset. According to a June 6 statement, the firm added 247 BTC, worth $17 million, to its treasury.

Also read: Semler Scientific soars 48% after adopting Bitcoin as reserve asset 

This latest purchase brings the firm’s total Bitcoin holdings to 828 BTC, which were acquired for an aggregate of $57 million, including fees and expenses. Semler CEO Doug Murphy-Chutorian said this purchase shows the company’s focus remains on its healthcare business and holding Bitcoin.

“The company now holds 828 bitcoins, underscoring our view that bitcoin is a compelling investment and can serve as a reliable store of value. We will continue to pursue our strategy of purchasing bitcoins with cash,” Doug Murphy-Chutorian added.

Semler eyes $150 million fundraising for Bitcoin

In a June 6 filing with the US Securities and Exchange Commission (SEC), the company hinted that it would pursue other avenues to fund its BTC acquisition drive. The company said it could issue up to $150 million worth of debt securities — the net proceeds of which would be “primarily [used] for general corporate purposes, including the acquisition of bitcoin.”

Market analysts have explained that Semler’s move was logical for its businesses. Sina G, the co-founder of BTC-focused 21st Capital firm, said, “Adopting a Bitcoin treasury is the logical strategy for cash-heavy businesses.”

He added:

“Semler Scientific has $57 million in cash and cash eq., which is the majority of their assets (i.e., 73%) They have a ton of cash and need a store of value. How many other companies are in the same boat?”

Following news of its recent purchase, Semler’s SMLR shares have risen by more than 3% at pre-market trading to $30.12 as of press time, according to Yahoo Finance data.

Bitcoin adoption grows among public companies

Semler’s move is similar to one MicroStrategy recently made, purchasing around $1 billion BTC over several months. Crypto YouTuber Adam Blumberg said he expects more institutional adoption of BTC, especially as inflation and accounting rules set in.

Also read: Bitcoin emerges as a haven amidst Republic First Bank crisis

Since the beginning of the year, institutional adoption of Bitcoin has reached new heights as the digital asset becomes more accessible to traditional investors following the approval of spot Bitcoin ETFs in January. SEC filings showed that more than 600 firms had secured exposure to the asset class through the newly launched ETF products.

Some public companies are taking it further by acquiring Bitcoin for their treasury. Japanese firm Metaplanet announced in April that it bought Bitcoin with 1 billion Japanese Yen ($6.5 million) and would denominate its treasury in Bitcoin. The company’s stock has seen significant gains, from 36 JPY in April to 85 JPY today.