Semler Scientific has gained 30% since accepting Bitcoin as a treasury.
Shares of Nasdaq-listed Semler Scientific ( SMLR ) surged 30 percent on May 28 after announcing that bitcoin would become its primary treasury asset. As part of the strategy, the company bought 581 bitcoins (BTC) for a total of $40 million.
“Our bitcoin treasury strategy and bitcoin acquisitions underscore our belief that bitcoin is a safe store of value and a compelling investment,” said Eric Semler, chairman of Semler Scientific.
The executive is president of TCS Capital Management, an investment fund known primarily for its activist investment strategies that target companies such as opinion platform Yelp. The fund does not appear to have direct or indirect exposure to Bitcoin.
“We believe that it has a unique characteristic that can be used as a rational and reliable currency,” Semler said of Bitcoin's strategy.
Semler provides technology tools and software to healthcare providers. According to its most recent earnings report, the company posted revenue of $15.9 million in the first quarter of 2024, a 13 percent decrease compared to the same period last year. However, net income increased by 22%, reaching 6.1 million dollars. Semler's balance sheet at the end of March showed $83.86 million in assets.
The company's board of directors and senior management spent an “extensive period” evaluating acquisition opportunities to assess the value of the stock, according to the statement. The Chairman continued:
“After studying various options, we decided that holding Bitcoin was the best use of our surplus funds.”
According to the executive, Bitcoin's structural resilience makes it preferable to gold. “Given the price differential between gold and bitcoin, we believe bitcoin has the potential to generate excess returns as it gains acceptance as digital gold,” he said.
MicroStrategy (MRST), the largest corporate holder of Bitcoin, also uses BTC as its primary reserve asset. In the year Since March 31st, MicroStrategy has bought 214,400 bitcoins, worth $13.5 billion, at an average price of $35,180.
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