Semler Scientific, a company listed on Nasdaq (SMLR), experienced a significant 30% surge in its stock price on May 28th after announcing its decision to make Bitcoin its primary treasury reserve asset. As part of this strategic move, the company acquired 581 Bitcoin (BTC) at a total cost of $40 million.
Eric Semler, the chairman of Semler Scientific, expressed his belief in Bitcoin as a reliable store of value and an attractive investment. Semler, who is also the president of the investment fund TCS Capital Management, known for its activist investment strategies, emphasized that the fund does not currently have any direct or indirect exposure to Bitcoin. He stated that Bitcoin possesses unique characteristics as a scarce and finite asset, making it a reasonable hedge against inflation and a safe haven amidst global instability.
Semler Scientific specializes in providing technology devices and software for healthcare providers. Although the company’s latest earnings report revealed a 13% decrease in revenue to $15.9 million in the first quarter of 2024 compared to the same period last year, its net income increased by 22% to $6.1 million. As of March, the company’s balance sheet displayed $83.86 million in assets.
The board of directors and senior management of Semler Scientific reportedly dedicated substantial time to exploring various options for their cash reserves, including potential acquisitions. Semler reiterated his preference for Bitcoin over gold, citing its architectural resilience. He expressed the belief that Bitcoin has the potential to generate significant returns as it gains wider acceptance as a digital alternative to gold.
MicroStrategy (MRST), the largest corporate holder of Bitcoin, also utilizes BTC as its primary reserve asset. As of March 31st, MicroStrategy owned 214,400 Bitcoin, valued at $13.5 billion, with an average purchase price of $35,180.
In other news, hip hop stars have shown a growing affinity for cryptocurrency, with many embracing Bitcoin as a means of diversifying their financial portfolios.