Semler Scientific's stock surged 30% after it announced Bitcoin as its primary reserve asset. The company bought 581 Bitcoin for $40 million. MicroStrategy also holds a significant amount of Bitcoin, worth $13.5 billion as of March 31.

On May 28, Nasdaq-listed Semler Scientific (SMLR) saw its stock price rise by 30% following the announcement that Bitcoin would become its main treasury reserve asset. The company purchased 581 Bitcoin for a total of $40 million. Eric Semler, the company's president, emphasized that Bitcoin is their strategic choice due to its perceived reliability as a store of value and its investment potential.

Steps into Bitcoin

Eric Semler, who is also president of TCS Capital Management, a hedge fund known for activist investments in companies like Yelp, stated that Bitcoin has unique properties as a scarce asset and a potential inflation hedge and safe haven during global instability. TCS Capital Management, however, does not have direct or indirect Bitcoin exposure.

Semler Scientific provides technology and software for healthcare providers. Despite a 13% decrease in revenue to $15.9 million in Q1 2024 compared to the same period last year, the company's net income rose by 22% to $6.1 million. The balance sheet at the end of March showed $83.86 million in assets.

Investments in Bitcoin

The decision to invest in Bitcoin came after the company's board and senior management extensively evaluated potential uses for their cash reserves. Semler noted that Bitcoin's value compared to gold and its growing acceptance as digital gold made it an attractive investment.

MicroStrategy, the largest institutional holder of Bitcoin, also uses it as their primary reserve asset. As of March 31, MicroStrategy holds 214,400 Bitcoin worth $13.5 billion, purchased at an average price of $35,180.