Semler Scientific, a medical device manufacturer and health technology company, announced Tuesday that it plans to purchase Bitcoin with its cash reserves, sending the company’s stock price up 27% almost immediately.
Semler Scientific’s Board of Directors “adopted Bitcoin as its primary treasury reserve asset” and “purchased a total of 581 Bitcoins. 40 million dollarsThe company said, “This amount includes fees and expenses.”
After closing at $23.32 per share on Friday (U.S. markets are closed on Monday), Semler Scientific’s stock price soared 27% on Tuesday, reaching $29.50 per share at one point, according to Yahoo Finance. So the market capitalization of all of Semler Scientific’s shares was worth just over $200 million at the time of publication.
“Our Bitcoin treasury strategy and Bitcoin purchases underscore our belief that Bitcoin is a reliable store of value and an attractive investment,” said Semler Scientific Chairman. Eric Semler said in a company statement:. “(bitcoin BTC
-2.63%
The company continues to generate revenue and build up cash reserves, and Bitcoin will “continue to serve as a key treasury” for Semler Scientific, he said.
Famously, business intelligence company Michael Saylor’s MicroStrategy began making purchases with excess cash in 2020 as a hedge against inflation.
Semler Scientific’s stock was trading around $29.21 at the time of the announcement, up 25.2.% on the day.
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RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal, writing about Disney, Netflix, Warner Bros. and the creator economy, focusing primarily on technological disruption across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.