Semler Scientific Mimics MicroStrategy, Chooses Bitcoin as Reserve
Semler Scientific , a developer of medical products for chronic diseases, announced on May 28, 2024, a shift in its treasury strategy. The company’s board of directors has approved Bitcoin as its primary treasury reserve asset, alongside a $40 million purchase of 581 bitcoins.
“This decision reflects our belief that Bitcoin is a reliable store of value and a compelling investment,” stated Eric Semler, Chairman of Semler Scientific. He pointed to Bitcoin’s growing acceptance and market capitalization exceeding $1 trillion as factors in their decision.
The company sees Bitcoin’s digital nature and scarcity as advantages over traditional assets like gold, particularly in a context of global instability. Additionally, Semler highlighted the recent approval of Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) and the significant institutional investment flowing into these funds.
This move comes after the company reported a decrease in revenue for the first quarter of 2024. Total revenue reached $15.9 million, a 13% decline compared to the same period in 2023. The company has not commented on whether this decrease is related to its decision to invest in Bitcoin.
The company’s move to Bitcoin echoes a similar strategy adopted by business intelligence firm MicroStrategy, which has been a vocal proponent of Bitcoin as a treasury reserve asset. It remains to be seen whether Semler Scientific is looking to Bitcoin as a potential hedge against inflation or if this signifies a broader shift in its financial strategy.
Semler Scientific emphasizes its core business of medical products and services remains its primary focus. “We are committed to our customers and delivering a growing, profitable healthcare company,” stated Dr. Doug Murphy-Chutorian, CEO of Semler Scientific. The company will continue seeking new applications for its flagship product, QuantaFlo, while maintaining its core business.
Bitcoin will serve as Semler Scientific’s main treasury holding, subject to market conditions and future cash needs. The company will continue to evaluate its use of excess cash as it generates revenue.
