Semler Scientific (NASDAQ:SMLR) saw its shares surge as much as 25% in early U.S. trading hours on Tuesday after the company announced it would purchase 581 bitcoins for treasury purposes.
Before the surge, the company’s market capitalization was less than $200 million. In its most recent earnings report, Semler said it had cash and cash equivalents of $62.9 million at the end of the first quarter. The company reported first-quarter revenue of $15.9 million and operating cash flow of $6.1 million.
According to a press release issued this morning, Semler acquired 581 bitcoins for $40 million, meaning the average price per token is about $68,850.
Eric Semler, the company’s chairman, emphasized that Bitcoin is emerging as a significant asset class, boasting a market capitalization of over $1 trillion. He highlighted Bitcoin’s unique properties as a scarce and finite asset that can act as a viable hedge against inflation and a haven amid global uncertainty. Semler also revealed his preference for Bitcoin over gold, citing its digital resilience compared to traditional precious metals.
Despite today’s impressive gains, Semler’s stock price remains just 2% lower than a year ago.
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