Semler Scientific buys Bitcoin for $40 million, share value skyrockets
Semler Scientific, a relatively unknown medical technology company, saw its share price rise this week after a very special announcement. They have purchased millions of Bitcoin to keep as a treasury reserve.
Price rises immediately after Bitcoin announcement
The company develops products for the detection of peripheral arterial diseases, shared that they purchased 581 Bitcoins for approximately $40 million. This also includes transaction costs.
Below is the share price of Semler Scientific, you can probably guess when it was announced that they bought Bitcoin.
On Tuesday, Semler’s stock rose 37%, while the value of bitcoin itself fell by about 2%. It was also time for a boost, the share price of Semler, with a market capitalization of approximately $210 million, is down more than 30% this year.
“Our bitcoin strategy and purchase underline our belief that bitcoin is a reliable store of value and an attractive investment,” said Eric Semler, chairman of Semler, in a statement. declaration.
“We believe bitcoin has unique characteristics as a scarce and finite asset that can serve as an inadequate protection and safe haven amid global instability.”
Core business remains the same
The move puts Semler in the same camp as MicroStrategy, which began an aggressive bitcoin buying strategy in 2020 and has since traded mainly as a proxy for the crypto’s price.
That stock is up about 163% this year. MicroStrategy started as an enterprise software provider, but… announced in February indicated that it would focus on bitcoin development.
On Tuesday, Semler said the company will continue to focus on its core products and services in the medical sector. As the company continues to grow and generate revenue from blood flow test sales, it will proactively evaluate its use of excess cash.
Many people see corporate adoption as a better indication of institutional adoption than large funds that may hold and trade the cryptocurrency.
