News
Semler Scientific launches new bitcoin treasury strategy
Scientific Semlera little-known medical technology company, saw its stock rise on Tuesday after it said it had adopted bitcoin as the treasury’s primary reserve asset, taking a page from the MicroStrategy playbook.
The company, which develops products used in the detection of peripheral arterial disease, also announced the purchase of 581 bitcoins for about $40 million, including fees and expenses.
The stock rose 37% on Tuesday, while bitcoin fell about 2%, according to Coin Metrics. Semler, which has a market capitalization of about $210 million, has lost more than 30% this year.
“Our bitcoin treasury strategy and bitcoin purchasing underscore our belief that bitcoin is a reliable store of value and a compelling investment,” Eric Semler, president of Semler, said in a statement.
See graph…
Semler Scientific rises after announcing bitcoin treasury strategy
“We believe it has unique characteristics as a scarce and limited asset that can serve as a reasonable hedge against inflation and a safe haven amid global instability,” he added. “Given the value gap between gold and bitcoin, we believe bitcoin has the potential to generate exceptional returns as it gains growing acceptance as digital gold.”
The move puts Semler in the same company as MicroStrategywho began to employ an aggressive bitcoin buying strategy in 2020 and has been trading primarily as a proxy for the cryptocurrency price 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 corporate focus and branding to bitcoin development.
On Tuesday, Semler said the company will continue to focus on its core medical products and services and that as it continues to generate revenue and free cash flow from sales of its blood flow tests, it will proactively evaluate using the cash in excess.
Tesla AND To block they are also among the companies that store a certain amount of bitcoin on their budgets.
Bitcoin is up 60% this year and is trading near its record high. Many see adoption by corporate treasuries as a better solution intuitive adoption indicatorcompared to big name funds that hold and potentially trade the cryptocurrency.
However, the trend has yet to take off in a big way, due to regulatory uncertainty and ESG considerations.