Semler Scientific Now Holds 4,449 BTC After $20 Million Bitcoin Purchase

Semler Scientific, Inc. (SMLR), a publicly traded healthcare technology company, announced on June 4 that it acquired an additional 185 Bitcoin (BTC) for approximately $20 million between May 23 and June 3, bringing its total holdings to 4,449 BTC. The latest purchase, made at an average price of $107,974 per Bitcoin, underscores the company’s ongoing commitment to accumulating the leading cryptocurrency as a core treasury asset. With a total investment of $410 million in Bitcoin since May 2024, Semler’s holdings are now valued at approximately $472.9 million as of June 3, reflecting a year-to-date Bitcoin yield of 26.7%.

Strategic Bitcoin Accumulation

Semler Scientific’s Bitcoin strategy began in May 2024, when it announced its adoption of BTC as its primary treasury reserve asset, purchasing 581 BTC for $40 million. Since then, the company has steadily increased its holdings, with notable acquisitions including 455 BTC for $50 million on May 23 and the latest 185 BTC. According to BitcoinTreasuries, Semler now ranks as the 14th largest corporate Bitcoin holder, trailing companies like Strategy and Marathon Digital.

The company has funded its Bitcoin purchases through an at-the-market (ATM) equity offering program. On April 15, Semler entered into a sales agreement with Barclays Capital, Cantor Fitzgerald, Needham & Company, Craig-Hallum Capital Group, and Lake Street Capital Markets, allowing it to issue up to $500 million in common stock. As of June 3, Semler had sold 3,544,588 shares, raising net proceeds of approximately $136.2 million, a portion of which directly supported its recent Bitcoin acquisition.

Stock Market Response

Despite the significant Bitcoin purchase, investor reaction to Semler’s announcement was muted. On June 4, Semler’s stock (SMLR) experienced an initial decline of approximately 4.6% at the opening, according to Yahoo Finance data. The stock then recovered throughout the day, closing at $35.76, a modest 0.51% increase from the previous day’s close of $35.58. The lack of significant volatility suggests that investors may view Semler’s Bitcoin strategy as a continuation of its established approach rather than a market-moving event.

Challenges and Outlook

Semler’s Bitcoin strategy is not without risks. Between January and February 2025, the company acquired 871 BTC at an average price of $101,616 per Bitcoin. However, in the first quarter of 2025, Bitcoin’s price experienced a significant pullback, dropping to around $75,000 by early April, largely due to the impact of Trump’s tariff policies. This volatility has exerted ongoing pressure on Semler’s stock (SMLR). The stock fell from $64.94 in January to a low of over 54% by mid-April. Even with a recent recovery driven by Bitcoin’s price rebound, SMLR’s stock price has declined 33.78% year-to-date as of June 4. Additionally, investors have raised concerns about Semler’s reliance on equity issuance to fund its Bitcoin purchases, fearing that continued rapid use of the ATM program could dilute shareholder value.

In April, Semler Scientific agreed to a tentative $29.75 million settlement with the U.S. Department of Justice (DOJ) to resolve allegations of federal anti-fraud law violations related to the marketing of its flagship product, QuantaFlo. To cover this settlement, Semler used its Bitcoin reserves as collateral to borrow cash and crypto assets from Coinbase. While this move preserved liquidity for other business operations at the time, it introduced new liabilities that could impact future profitability.

Notably, Semler’s average Bitcoin acquisition cost of $92,158 per BTC is relatively high compared to other companies with significant Bitcoin holdings. This means that a price correction to $90,000 or lower could have a substantial financial impact on Semler’s balance sheet.

Looking ahead, Semler’s growing Bitcoin holdings position it as a notable player in the corporate adoption of cryptocurrency. Its ability to maintain a positive BTC yield and navigate market fluctuations will be critical to sustaining investor confidence.