Semler Scientific Plans $500 Million Offering to Expand Bitcoin Holdings

Semler Scientific plans to raise up to $500 million through a securities offering to bolster its Bitcoin portfolio despite a 5.0% unrealised loss on prior investments. The filing with the SEC includes provisions for generating common stock, preferred stock, and debt securities. The firm recently increased its Bitcoin holdings to 3,192 BTC but faces legal challenges that may pressure its financial standing.

Semler Scientific (SMLR), a US-based medical technology company, aims to enhance its Bitcoin (BTC) portfolio despite experiencing a 5.0% unrealised loss from prior investments. The company has submitted a Form S-3 registration with the US Securities and Exchange Commission (SEC) to raise up to $500 million via a securities offering, intending to utilise the proceeds for general corporate purposes, including Bitcoin investments.

The SEC filing outlines the intention to issue common stock, preferred stock, debt securities, and warrants in the securities offering. Although the document does not detail the specific funds allocated for Bitcoin purchases, Semler’s recent activity indicates a strong commitment to cryptocurrencies. Management retains broad discretion on how to utilise net proceeds from the offering.

This strategy follows Semler’s acquisition of 871 BTC valued at $88.5 million, with an average price of $101,616 per Bitcoin, completed between January 11 and February 3, 2025. These investments increased Semler’s total Bitcoin holdings to 3,192 BTC, equivalent to $266.1 million, constituting 80.6% of the company’s market capitalisation of $330.1 million.

From January 1 to February 3, 2025, Semler reported a BTC Yield of 21.9%. During the first full quarter post-adoption of their Bitcoin treasury strategy, the yield rose to 152.2%. However, an analysis by Bitcoin Treasuries indicates that Semler’s average acquisition cost is $87,850 per BTC, and the current market price of Bitcoin is $83,397, leading to the aforementioned unrealised loss.

Despite previous losses peaking at 14.7% when BTC dipped below the $80,000 threshold, Semler’s leadership remains resolute in viewing Bitcoin as a long-term store of value. Semler shares this strategic shift with other firms, such as Strategy and Metaplanet, which have significantly invested in BTC recently.

However, Semler faces financial and legal hurdles, such as a preliminary $29.75 million settlement with the US Department of Justice (DOJ) for alleged violations of federal anti-fraud laws associated with its QuantaFlo product marketing, pending final approval. This legal situation adds strain to the company’s balance sheet amidst its ongoing Bitcoin investment and fundraising efforts.