Medical device maker and healthcare technology company Semler Scientific announced on Tuesday that it will purchase bitcoin using its cash reserves. Following this announcement, the company's shares surged by up to 27%.

Semler Scientific's board of directors decided to adopt bitcoin as its main treasury reserve asset and has bought 581 bitcoins for a total of $40 million, including fees and expenses.

After closing at $23.32 per share on Friday (U.S. markets were closed Monday), Semler Scientific's stock jumped to $29.50 per share on Tuesday, according to Yahoo Finance. This increase brought the company's market capitalization to just over $200 million.

Semler Scientific Chairman Eric Semler stated that the company's bitcoin strategy and purchase demonstrate their belief in bitcoin as a reliable store of value and a compelling investment. He highlighted bitcoin's unique qualities as a scarce and finite asset that can act as a reasonable hedge against inflation and a safe haven amid global instability.

The company plans to continue generating revenues and accumulating cash reserves, with bitcoin serving as its principal treasury holding.

Shares of Semler Scientific traded around $29.21 at the time of publication, up 25.2% on the day.