The stock price of Semler Scientific, Inc. (NASDAQ: SMLR) saw a notable increase in response to a newly disclosed strategic decision. After-hours trading saw SMLR shares rise 11.03% to $32.20 in response to the announcement, continuing the 24.36% gain that they had made during the regular session, which ended at $29.00.
Using Bitcoin As A Reserve Asset For The Treasury
Semler Scientific (SMLR) has decided to utilize bitcoin as the company’s primary treasury reserve asset. Once fees and penalties are subtracted, the company has invested $40 million to buy 581 bitcoins. This decision of its board of directors reflects Semler Scientific’s conviction that bitcoin is a reliable store of wealth and a sound investment.
Semler Scientific believes that the distinctive qualities like its limited supply and scarcity make bitcoin a sensible hedge against inflation and a safe haven in times of world unrest. With a market value of more than $1 trillion, bitcoin is well-positioned to provide significant profits as more people recognize it as the digital version of gold.
Adoption By Institutions And Its Consequences For Strategy
The growing institutional adoption of bitcoin has further energized Semler Scientific’s commitment to this strategy. Recent approval by the Securities and Exchange Commission of 11 bitcoin exchange-traded funds (ETFs) in January 2024 has led to over $13 billion in net inflows from nearly 1,000 institutions, including pensions, endowments, registered investment advisors as well as global banks. It is estimated that institutional holdings now account for more than 10% of all bitcoins.
Focus On Core Medical Products
Semler Scientific is committed to its primary business activities in spite of this renewed emphasis on bitcoin. Sales of QuantaFlo, its diagnostic tool for assessing peripheral artery disease, remain Semler Scientific’s top priority. Semler Scientific is also requesting a fresh approval from the FDA to broaden the product’s label to include the diagnosis of additional cardiovascular conditions.
The objective of this well-rounded strategy is to capitalize on the advantages of bitcoin while preserving and improving the business’s well-known medical goods and services.
