Semler Scientific, a healthcare technology company known for its innovative solutions, has made a big move into the world of cryptocurrency. The company has significantly expanded its Bitcoin holdings, now at 1,873 BTC, with an average purchase price of $78,553 per Bitcoin. Between November 25 and December 4, 2024, Semler bought 303 BTC for $29.3 million, which equates to an average cost of $96,779 per Bitcoin. This aggressive move is part of their broader strategy to integrate Bitcoin into their financial operations, which they claim is aligned with shareholder interests.
Semler Scientific has reported a 13.32% drop in short interest, with 892,000 shares now sold short, representing 13.28% of the tradable shares. Based on current trading volumes, it would take traders an average of 1.46 days to hedge these positions.
Financing the Bitcoin buying wave
To finance these purchases, Semler used an at-the-market (ATM) equity offering through its partnership with Cantor Fitzgerald & Co. Initially they wanted to raise $50 million, but later doubled the offer to $100 million. As of now, they have generated $79.8 million in gross revenue, fueling their Bitcoin acquisition strategy.
What is BTC Yield?
Semler has introduced a unique metric called BTC Yield to measure the performance of its Bitcoin holdings. BTC Yield reflects the percentage change in the ratio of Bitcoin ownership to shares outstanding. Since the company adopted its Bitcoin treasury strategy in July 2024, its BTC return has reached an impressive 78.7%, with an increase of 54.7% in the most recent period.
However, BTC Yield is not a profitability measure. It does not represent traditional financial gains, but instead highlights how Bitcoin investments align with equity.
Weighing risks and opportunities
Eric Semler, the company’s chairman, expressed optimism about their crypto strategy and highlighted its potential for long-term shareholder benefits. In addition to Bitcoin, Semler is also seeking approval for options trading on their shares, indicating a diversification of their financial approach.
That said, the company acknowledges risks, including Bitcoin’s volatility and their reliance on stock sales to fund acquisitions. Furthermore, Semler Scientific’s Bitcoin buying strategy reflects an assertive stance in the crypto market, with an average purchase price of $78,553 per BTC. The latest acquisition at a premium price of $96,779 per BTC underlines the company’s unwavering confidence in Bitcoin’s long-term potential.
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The current status of Bitcoin
Bitcoin rose to $103,047.71 early today, marking a major milestone as its market cap rose 6.84% to $2.03 trillion, according to CoinMarketCap. At the time of writing, the leading cryptocurrency is trading at $102,388.46, reflecting strong upward momentum in the market.
Frequently asked questions
BTC Yield measures the percentage change in Bitcoin ownership relative to stocks, showing alignment with equity, not profitability.
Semler Scientific owns 1,873 BTC, acquired at an average price of $78,553, as part of its corporate treasury strategy.
Credit : coinpedia.org
