Semler Scientific (SMLR), a company listed on the Nasdaq, experienced a significant surge in its stock price on May 28th, with a 30% increase. This increase was attributed to the company’s announcement that it would be adopting Bitcoin as its primary treasury reserve asset. To implement this strategy, Semler Scientific purchased 581 Bitcoin (BTC) at a total cost of $40 million.
Eric Semler, the chairman of Semler Scientific and also the president of investment fund TCS Capital Management, expressed his belief in Bitcoin as a reliable store of value and an attractive investment. TCS Capital Management is known for its activist investment strategies and has targeted companies like Yelp in the past. However, the fund does not currently have any exposure to Bitcoin.
Semler further emphasized his confidence in Bitcoin, highlighting its unique characteristics as a scarce and finite asset that can serve as a hedge against inflation and a safe haven during times of global instability.
Semler Scientific specializes in providing technology devices and software for healthcare providers. Despite a 13% decrease in revenue to $15.9 million in the first quarter of 2024 compared to the same period last year, the company saw a 22% increase in net income, reaching $6.1 million. As of March, Semler Scientific had $83.86 million in assets.
The company’s board of directors and senior management thoroughly evaluated various potential uses for its cash reserves, including exploring acquisition opportunities. Ultimately, they concluded that Bitcoin’s architectural resilience and potential for significant returns, in comparison to gold, made it a preferable choice.
MicroStrategy (MRST), the largest corporate holder of Bitcoin, also shares Semler Scientific’s approach and uses BTC as its primary reserve asset. With 214,400 Bitcoin owned as of March 31st, valued at $13.5 billion, MicroStrategy has purchased Bitcoin at an average price of $35,180.
In the world of hip hop, Bitcoin’s popularity is also on the rise. Hip hop stars are increasingly embracing cryptocurrencies, recognizing the potential they hold.