Semler Doubles Down on Bitcoin Investments Despite Losses

Semler Scientific (SMLR), a US-based medical technology company, has revealed plans to acquire more Bitcoin (BTC) despite facing a 5.0% unrealized loss on its previous BTC investments. 

The firm has filed a Form S-3 registration with the US Securities and Exchange Commission (SEC) to raise up to $500 million through a securities offering. The proceeds would be allocated for general corporate purposes, including expanding its Bitcoin portfolio.

Semler Scientific Files S-3 to Fund Bitcoin Investments

According to the official filing, the firm plans to issue common stock, preferred stock, debt securities, and warrants as part of the securities offering. The SEC filing does not specify the exact amount allocated for Bitcoin purchases. Nonetheless, Semler’s recent activity suggests a strong focus on cryptocurrency.

“We have not determined the amount of net proceeds to be used specifically for such purposes. As a result, management will retain broad discretion over the allocation of the net proceeds of any offering,” the filing read.

This move follows Semler’s previous acquisition of 871 BTC for $88.5 million at an average price of $101,616 per Bitcoin. The purchases were made between January 11 and February 3. 

The acquisition increased Semler’s total Bitcoin holdings to 3,192 BTC. The holdings worth $266.1 million represent 80.6% of the company’s total market capitalization of 330.1 million. This indicates that a significant portion of its value is tied to its Bitcoin investments.

“From January 1, 2025, to February 3, 2025, Semler Scientific’s BTC Yield was 21.9%. From July 1, 2024 (the first full quarter after Semler Scientific adopted its bitcoin treasury strategy) to February 3, 2025, Semler Scientific’s BTC Yield was 152.2%,” the firm revealed.

However, the tides have shifted since then. According to Bitcoin Treasuries, Semler’s average BTC acquisition cost is $87,850 per coin. As of the latest data from BeInCrypto, Bitcoin’s market price stood at $83,397, placing Semler at a 5.0% loss on its investment. 

Previously, BeInCrypto noted that the losses surged to 14.7% as BTC fell below the $80,000 mark. Despite this, Semler’s leadership appears committed to its Bitcoin strategy, viewing the cryptocurrency as a long-term store of value.

Semler’s strategic push into Bitcoin mirrors those of other firms, such as Strategy (formerly MicroStrategy) and Metaplanet. Earlier this week, the firms acquired BTC worth $285 million and $26.3 million, respectively. 

However, Semler’s decision to double down on Bitcoin comes amid financial and legal challenges. On April 15, the company announced a preliminary $29.75 million settlement with the US Department of Justice (DOJ) to resolve allegations of violating federal anti-fraud laws related to marketing its QuantaFlo product.

The settlement is pending final approval. Yet, it adds pressure to Semler’s balance sheet as it navigates its ambitious fundraising and Bitcoin investment plans.