Following in the footsteps of Michael Saylor’s MicroStrategy, yet another publicly listed company has decided to make Bitcoin (BTC) its savings vehicle of choice after adopting the foremost crypto as its “primary treasury reserve asset.”
Medical device maker Semler Scientific announced Tuesday that it had purchased 581 BTC for $40 million. The adoption of BTC has already helped Semlar Scientific gain significant market momentum, with the stock price up 32% post-announcement.
Semler Scientific’s Bitcoin Strategy
Nasdaq-listed healthcare technology company Semler Scientific has bought Bitcoin with its cash reserves. According to the May 28 announcement, the company’s board of directors purchased 581 BTC for a total of $40 million, fees and expenses included.
“Our Bitcoin treasury strategy and purchase of Bitcoin underscore our belief that Bitcoin is a reliable store of value and a compelling investment,” said Chairman Eric Semler in the company’s accompanying statement. “We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability.”
Semler Scientific indicated that it will continue to generate revenues and accumulate cash reserves, and Bitcoin will serve as the company’s “principal treasury holding on an ongoing basis” as they believe the benchmark cryptocurrency “has the potential to generate outsize returns as it gains increasing acceptance as digital gold.”
Semler Scientific’s Shares Soar As Company Mimics MicroStrategy On Bitcoin Buying
Immediately after the announcement, SMLR stock jumped 32% to $31.07 apiece, jumpstarting a robust recovery following continuous losses since its $52 yearly high back in February. According to Yahoo Finance, the company’s market capitalization was $215 million at the time of publication.
Using Bitcoin as a treasury asset was popularized by the Fortune 500 firm MicroStrategy, helmed by Michael Saylor. As of March 31, Tysons Corner, Virginia-based MicroStrategy, owned 214,400 Bitcoin, valued at over $13.5 billion. The business intelligence company’s stock has soared in value by over 1,000% since its first Bitcoin purchase in 2020.
Similarly, Tokyo-listed Web3 infrastructure provider Metaplanet has nearly tripled in value since disclosing its Bitcoin strategy roughly two months ago. Metaplanet announced on Tuesday that it would purchase an additional 250 million yen ($1.6 million) worth of BTC. The company also aims to accumulate more Bitcoin over time.
Bitcoin is currently trading at around $67,595, according to CoinGecko data.
