Semler Scientific, a company listed on the Nasdaq under the ticker symbol SMLR, experienced a significant surge in its stock price, skyrocketing by 30% on May 28th. The reason behind this sudden increase was the company’s announcement that it would be adopting Bitcoin as its main treasury reserve asset. In line with this strategic move, Semler Scientific purchased a total of 581 Bitcoin (BTC) for a sum of $40 million.
Eric Semler, the chairman of Semler Scientific, expressed his confidence in Bitcoin as a reliable store of value and an attractive investment. Alongside his role at Semler Scientific, Semler is also the president of TCS Capital Management, an investment fund well-known for its activist investment strategies. Although the fund does not appear to have any direct or indirect exposure to Bitcoin, Semler believes in the unique qualities of Bitcoin as a scarce and finite asset that can serve as a hedge against inflation and a safe haven amidst global instability.
Semler Scientific specializes in providing healthcare providers with technology devices and software. In the first quarter of 2024, the company generated $15.9 million in revenue, marking a 13% decrease compared to the same period last year. However, its net income saw a 22% increase, reaching $6.1 million. As of March, Semler Scientific had $83.86 million in assets.
The company’s board of directors and senior management dedicated considerable time to exploring potential uses for its cash reserves, including evaluating acquisition opportunities. Semler emphasized that Bitcoin’s architectural resilience makes it a more favorable choice than gold. He believes that the value gap between gold and Bitcoin presents an opportunity for Bitcoin to generate substantial returns as it gains wider acceptance as a digital form of gold.
MicroStrategy, the largest corporate holder of Bitcoin, also considers BTC its primary reserve asset. As of March 31st, MicroStrategy owned 214,400 Bitcoin, amounting to $13.5 billion, which it acquired at an average price of $35,180.
In the world of hip hop, there is a growing affinity for cryptocurrencies, with many artists embracing Bitcoin and other digital assets. It has become a trend among hip hop stars to invest in and promote the use of cryptocurrencies, reflecting the increasing popularity and acceptance of these digital currencies.