Semler Scientific recently made a significant shift in its investment strategy by converting much of its cash holdings to bitcoin. This decision came after Eric Semler, the company’s chairman, became more actively involved in the company in April 2023. Inspired by the success of MicroStrategy in adopting a similar bitcoin strategy, Semler Scientific has already spent over $60 million acquiring the cryptocurrency and plans to purchase even more pending SEC approval for a capital raise.
The company’s founder, Dr. Herbert Semler, who started Semler Scientific in 2007, had a strong interest in this new investment strategy. Eric Semler mentioned that his father, Herbert, who is now retired at almost 96 years old, was excited about the company’s decision to invest in bitcoin. Drawing inspiration from his grandfather, Harry Semler, who saw gold as a great investment, Eric views bitcoin as the “new gold.”
Since Eric Semler took on a more active role in the company, Semler Scientific has been following in the footsteps of MicroStrategy by converting its cash reserves into bitcoin. Despite a recent decline in bitcoin’s price, the company remains committed to its strategy, emphasizing the importance of conviction in making investment decisions.
In an effort to raise more capital for bitcoin investments, Semler Scientific filed a $150 million mixed shelf offering in June and is currently awaiting SEC approval. Although approval may take longer for a smaller company like Semler Scientific, the company is optimistic about the potential for larger bitcoin purchases in the future.
Eric Semler, an experienced investor since 1998, has been a believer in bitcoin for several years. He recognized the staying power of the cryptocurrency during the collapse of Silicon Valley Bank in 2023, which further solidified his confidence in bitcoin as a long-term investment. The decision to use bitcoin as a treasury reserve was driven by a desire to provide more value to shareholders and leverage the company’s strong financial position.
In conclusion, Semler Scientific’s shift to bitcoin as a treasury strategy reflects a growing trend among companies seeking to diversify their cash holdings and capitalize on the potential of cryptocurrency. With a strong commitment to their investment strategy and a focus on long-term value creation, Semler Scientific is poised to navigate the evolving landscape of digital assets successfully.