Semler Scientific, Inc. (Nasdaq: SMLR) has increased its bitcoin (BTC) holdings following the purchase of an additional 871 BTC for $88.5 million.
The acquisition, funded through proceeds from its January 2025 senior convertible notes offering and the monetization of a minority investment in Monarch Medical Technologies, LLC, brings the company’s total bitcoin reserves to 3,192 BTC as of February 3, 2025.
Semler Scientific: Bitcoin Acquisition and Strategy
The company’s latest bitcoin purchase was made at an average price of $101,616 per BTC, inclusive of fees and expenses. Since implementing its bitcoin treasury strategy in July 2024, Semler Scientific has accumulated BTC at an average purchase price of $87,854 per coin, for a total investment of $280.4 million.
Semler Scientific measures the success of its bitcoin investments using BTC Yield, a key performance indicator (KPI) designed to assess the accretive impact of BTC acquisitions relative to its outstanding shares. The company reported a BTC Yield of 21.9% from January 1, 2025, to February 3, 2025, and 152.2% since July 1, 2024.
The company’s approach aligns with a growing trend of publicly traded firms adopting bitcoin as a treasury asset. However, Semler Scientific notes that BTC Yield is not a direct measure of stockholder returns, bitcoin price appreciation, or company profitability.
The company also acknowledges the volatility of bitcoin and the risks associated with using convertible debt to fund purchases.
Market Context and Future Outlook
Semler Scientific’s bitcoin accumulation mirrors broader institutional adoption trends, with firms increasingly using BTC as a hedge against inflation and a strategic treasury reserve. The company has financed its bitcoin purchases through cash flow, stock issuances, and convertible notes, a strategy that has garnered strong investor interest.
Despite its growing BTC reserves, Semler Scientific has emphasized that BTC Yield should be interpreted within its intended scope and not as a predictor of stock price performance. The company continues to explore opportunities to expand its bitcoin holdings while managing associated financial risks.
