Medical device manufacturer Semler Scientific (Nasdaq: SMLR) announced the acquisition of an additional 247 Bitcoins for $17 million in cash, bringing its total holdings to 828 BTC. The company also plans to raise $150 million to expand its Bitcoin reserves.
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Semler made waves last month when he adopted Bitcoin as his primary treasury reserve asset, mimicking MicroStrategy’s influential corporate Bitcoin accumulation strategy. After purchasing his first 581 bitcoins, Semler continued to acquire more coins.
“Semler remains focused on two strategies: expanding our healthcare business and acquiring and holding Bitcoin,” said CEO Doug Murphy-Chutorian. “We will continue to pursue our strategy of purchasing Bitcoin with cash.”
The company filed a Form S-3 with the SEC outlining plans to raise $150 million in debt, some of which will be used to purchase more Bitcoin. Semler noted in the filing that he sees Bitcoin as “a reasonable inflation hedge and safe haven amid global instability.”
Semler is following the lead of MicroStrategy, which has amassed more than 200,000 bitcoins and fueled a recent trend of public companies adding bitcoin to their balance sheets. After MicroStrategy began purchasing Bitcoin in 2020, its stock price rose dramatically as investors responded positively.
Other companies, such as Japanese-listed Metaplanet, also began following MicroStrategy’s Bitcoin treasury allocation playbook this year. They recognize that holding a scarce asset like Bitcoin can potentially increase the value of a company.
This shows Bitcoin’s game theory in action as companies increasingly adopt Bitcoin to maximize shareholder value. Semler’s continued Bitcoin acquisition reflects its belief that adding it to its balance sheet could significantly improve its business.
As this latest trend gains mainstream validation, it is likely that more public companies will take interest in Bitcoin and follow Microstrategy’s playbook.
Source: Bitcoin Magazine