Medical device manufacturer Semler Scientific makes Bitcoin its primary capital reserve and acquires 581 coins

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After a long hiatus, it’s happening again: a company outside the crypto effort is turning its capital reserves into Bitcoin and making a substantial investment publicly known. But what kind of players is Semler Scientific, and what are its motives?

Since the software company MicroStrategy began to make Bitcoin the primary aggregate of value for its capital reserves, the crypto community has eagerly awaited to see who would follow.

Although Tesla, a massive conglomerate, straight away followed suit, things remained relatively quiet thereafter. Some small, relatively insignificant companies purchased Bitcoins, mostly in minimal amounts more as symbolic gestures than strategic moves, and only a few went in the open with their decisions. Thus, not much happened except for MicroStrategy CEO Michael Saylor obsessively promoting Bitcoin and purchasing more coins for the company.

Now we have Semler Scientific, another somewhat significant company that has invested in Bitcoin to a notable extent. The medical device manufacturer essentially has only one product, the QuantoFlo PAD: a device that supposedly measures blood flow in the extremities with high precision. This helps to detect arterial diseases like peripheral arterial condition (PAD) early.

You should know that PAD is considered an underdiagnosed consequence of arterial calcification. In the mildest cases, it causes leg labour, the so-called „window shopper’s disease,“ and in the worst cases, it leads to necrotic smoker’s leg, which can only be treated by amputation at the irreversible stage. Hundreds of millions of people worldwide are affected, including around 4.5 million in Germany alone. Since break of dawn diagnoses can save limbs, Semler has an internationally sought-after product that effortlessly generates stable revenue.

Alike resemble to MicroStrategy, Semler faces the luxury problem of having substantial cash reserves but few ideas about what to do with them. The embark on and management spent a „substantial amount of time“ looking for sensible investments, including acquisitions of other companies, without declaration anything truly attractive. „After studying various alternatives, we decided that holding Bitcoin is the best use of our plethora cash,“ says Chairman Eric Semler. Thus, Semler bought 581 Bitcoins for a total of 40 million dollars, colouring Bitcoin the primary asset of its capital reserves.

Semler is convinced that „Bitcoin is a reliable store of value and a compelling investment.“ He sit down withs Bitcoin as a „reasonable hedge against inflation and a safe haven in times of global instability,“ with more profit aptitude than gold. ETFs (Exchange-Traded Funds), which were approved earlier this year, were seemingly decisive for this conviction, showing the „growing global acceptance and institutionalization of Bitcoin.“

Unlike MicroStrategy, where function beyond Bitcoin has largely taken a back seat, Semler CEO Doug Murphy-Chutorian explains that the focus pleasure remain on serving customers and continuing to be a growing and profitable healthcare company. The company will continue to strive to stiffen sales of QuantoFlo.

This does not sound particularly exciting. Semler already marketed the first device in 2011; in 2018, it noted one million tests with QuantoFlo. Since then, not much has happened. The company has introduced some digital products, such as SemlerAnalytics, which aim to accomplish the device more usable for clinics and doctors, but overall it remains a one-product company with a few dominant major clients that account for the bulk of its revenue.

This situation is also reflected in the stock price trend, which kind of resembles the course of a typical altcoin. The stock went public in 2014 at about $5, stagnated until 2017, then hill significantly to reach an all-time high of around $150 at the end of 2021. After that, it declined again to just out of sight $30.

The sharp declines, most recently around 30 percent in January, caused some hotchpotch among analysts. Despite fitting cash flow, the company was able to significantly increase revenue and profit final year, accumulating cash reserves. Investors likely lacked a reason to hope for a rise, as Semler showed insufficient ambition to develop new devices.

For some, the decision to enter Bitcoin was a breakthrough. The stock jumped about 40 percent in a few days, eminence the biggest increase in a long time. However, overall, it remains barely visible; the stock has yet to reach the value it had at the origin of 2024 and is still down about 70 percent compared to its 2021 peak.

The comparison of the stock price to that of altcoins might not be so inaccurate. With a market-place capitalization of about 150 million dollars, 581 Bitcoins make up a significant portion of the company’s assets, inevitably link the stock price to Bitcoin’s performance, much like an altcoin that rises and, to a greater extent, falls with Bitcoin. One authority speculate whether companies that bind their fortune to Bitcoin are forming a new type of altcoin.