Semler Scientific Strengthens New Bitcoin Treasury Strategy
Semler Scientifica little-known medical technology company, saw its shares skyrocket Tuesday after saying it had adopted bitcoin as its primary treasury reserve asset, taking a page from MicroStrategy’s playbook.
The company, which develops products used to detect peripheral artery disease, also announced the purchase of 581 bitcoins for about $40 million, including fees and expenses.
According to Coin Metrics, stocks rose 30% on Tuesday, while bitcoin traded about 2% lower. Semler, which has a market capitalization of about $210 million, is down more than 30% this year.
Eric Semler, president of Semler, said in a statement: “Our bitcoin treasury strategy and the purchase of bitcoin underscore our belief that bitcoin is a trusted store of value and a attractive investment”.
Semler Scientific soars after announcing bitcoin treasury strategy
He added: “We believe it has unique characteristics as a scarce and finite asset, which can serve as a reasonable inflation hedge and safe haven amid global instability”. “Given the gap in value between gold and bitcoin, we believe bitcoin has the potential to generate outsized returns as it becomes increasingly accepted as digital gold.”
This move puts Semler in the same company as Micro strategyStart using it actively bitcoin buying strategy in 2020 and has primarily traded as a proxy for cryptocurrency prices since then. That stock is up about 163% this year.
MicroStrategy launches as an enterprise software provider. This February, the company said it would shift its focus and brand to bitcoin development.
On Tuesday, Semler said the company will continue to focus on its core medical products and services, at the same time as it continues to generate revenue and free cash flow from the sale of flow tests blood, the company will proactively evaluate the use of excess funds.
Tesla And Block are also among the companies hold an amount of bitcoin on their balance sheet.
Bitcoin is up 60% this year and is trading near record levels. Many consider adoption by corporate treasuries to be a better solution indicator of visual adoptioncompared to big-name funds that hold and have the ability to trade cryptocurrencies.
However, this trend has not yet taken off due to regulatory uncertainty and ESG considerations.
