Semler Scientific Expands Bitcoin Holdings Despite Financial Woes
Semler Scientific has intensified its commitment to Bitcoin (BTC), investing an additional US$50 million (approximately AU$76 million) into its cryptocurrency portfolio. This move, disclosed in a recent SEC filing, saw the acquisition of 455 BTC between May 13 and 22, bringing its total Bitcoin holdings to 4,264 coins, valued at around US$457 million (AU$702 million). This positions Semler as the 13th largest corporate Bitcoin holder globally. The company’s total investment in Bitcoin now stands at US$390 million (AU$599 million), giving it an average cost of US$91,471 (AU$140,667) per coin.
Chairman Eric Semler announced that the firm has achieved a 25.8% yield on its Bitcoin investments year-to-date, despite Bitcoin’s recent decline of nearly 4% and its current trading price just above US$107,000 (AU$164,000).
Investments Amidst Challenges
The company’s decision to invest heavily in Bitcoin comes against a backdrop of significant financial challenges. In the first quarter of 2025, Semler reported a net loss of US$64.7 million (AU$99.5 million) and a 44% year-over-year revenue decline. Furthermore, the company faces a US$30 million (AU$46 million) investigation from the Department of Justice, which adds a layer of legal uncertainty to its aggressive investment strategy.
Semler is the second US public company to embrace Bitcoin as a treasury asset, following Strategy, which has amassed a staggering 576,230 BTC, worth over US$62 billion (AU$95 billion).
Mixed Reactions to Semler’s Bitcoin Strategy
The market’s response to Semler’s pivot towards cryptocurrency has been divided. Some see it as a unique opportunity to leverage the potential of Bitcoin, while others question the wisdom of integrating a highly volatile asset into the framework of a company that is already navigating turbulent financial waters.
In an effort to bolster its commitment to cryptocurrency, Semler has established a Bitcoin Strategy Committee and appointed Natalie Brunell, a well-known advocate for Bitcoin, to its board of directors. This step reflects its intent to centralise digital assets within its growth strategy.
In conclusion, while Semler Scientific’s bold move into Bitcoin could signal a shift towards innovative asset management, it also raises questions about the sustainability and risk of such a strategy in light of its current financial difficulties. As the company maneuvers through this phase, stakeholders will need to watch how this investment plays out amidst external pressures and internal challenges.
