In an exclusive interview with Bitcoin Magazine, Eric Semler, chairman of Semler Scientific, expressed admiration for Michael Saylor's aggressive bitcoin treasury strategy at MicroStrategy, while indicating a more cautious approach for his own company.

On Tuesday, Semler Scientific, Inc. (Nasdaq: SMLR), a leading medical software company, announced the acquisition of 581 bitcoins for roughly $40 million as part of its new “bitcoin treasury strategy.” This move has drawn comparisons to MicroStrategy's notable conversion of nearly all its treasury reserves into bitcoin.

"I couldn't help but notice what MicroStrategy accomplished," Semler shared with Bitcoin Magazine. "It's amazing what they've done. They have this great story of taking a company that was basically trading at the market value — its cash was its complete value — and just turning that cash into a growth asset through their purchases of Bitcoin. It was a brilliant move on Michael Saylor's part, and he's obviously proven himself with that strategy."

Despite his admiration for Saylor’s boldness, Semler stressed a more measured approach for Semler Scientific. He emphasized the importance of not deviating from their primary mission of producing high-quality medical software, even as they make bitcoin their primary treasury asset.

"You have to go slowly and just figure out what the right approach for you as a company is," said Semler. "We have a medical device software business. We have to weigh the pros and cons of that business and our bitcoin investments."

Semler also revealed his philosophical alignment with the idea of bitcoin as a superior alternative to gold. "Philosophically, I see merit in the argument that bitcoin is a really great alternative to gold," he noted. "I believe in gold, but I believe that bitcoin is kind of gold with optionality." He praised Bitcoin’s perfect scarcity, technical durability, and "architectural resilience," and acknowledged its growing acceptance among the millennial generation.

As Semler Scientific enjoys a high-margin business, the company found itself with excess cash. After considering traditional options like stock buybacks or treasury investments for yield, Semler and his board decided to invest a significant portion of their cash reserves in bitcoin.

Semler, with his extensive background in capital markets and investments in small- and mid-cap (SMID-cap) companies, understands the need for such companies to differentiate themselves to attract investor attention. "It takes a lot for a SMID-cap company to get the attention of investors," he explained. "When you can do something dynamic — like invest in digital gold when not a lot of other people are doing it — that’s meaningful and significant."

This strategic move seems to have already paid off, as Semler Scientific's stock is currently trading at just over $32, a notable increase of approximately 50% since the bitcoin treasury announcement.

Semler’s strategic investment in bitcoin reflects his belief in its long-term value and its potential to position Semler Scientific uniquely within the investment landscape. While he remains cautious, the move signals a significant shift in how traditional companies might leverage digital assets to enhance their growth and appeal to investors.