The investment strategy of MicroStrategy, a listed company in the United States, to invest in Bitcoin has been followed by an increasing number of businesses. On Tuesday, Semler Scientific, a US medical technology company, announced that it has spent $40 million to purchase 581 Bitcoins as its main reserve. Encouraged by this, the company’s stock price surged more than 24% in a single day.
Semler Scientific is a listed medical technology company in the United States that primarily develops products for detecting peripheral arterial disease. It has little to do with Web3. However, the company announced on Tuesday that it has decided to adopt Bitcoin as an important reserve asset. It has spent approximately $40 million (including fees and expenses) to purchase 581 Bitcoins, leading to a 24.36% increase in its stock price.
Semler Scientific’s current market value is $2.05 billion. It has experienced a decline of over 36% this year. However, after announcing the purchase of Bitcoin, its stock price soared and reached a two-month high, highlighting the significant impact of the Bitcoin investment strategy on the stock price in the short term.
Eric Semler, the chairman of Semler Scientific, expressed his praise for the potential of Bitcoin through a press release. He stated that Semler Scientific’s Bitcoin reserve strategy and the purchase of Bitcoin reflect the company’s belief that Bitcoin is a reliable means of storing value and an attractive investment. Eric Semler pointed out that Semler Scientific’s board of directors and senior management spent a lot of time studying the potential uses of the company’s cash, including acquisitions. After researching various alternative solutions, they concluded that holding Bitcoin would be the best use of the company’s excess cash.
Semler Scientific stated that, combined with its Bitcoin reserve strategy, the company will continue to focus on its core medical products and services. It will generate revenue and free cash flow through the sale of blood testing products. The company will actively evaluate the use of its excess cash, and Bitcoin will continue to be its main reserve asset. However, this situation may be adjusted depending on market conditions and the company’s cash needs.
As the global leader in Bitcoin holdings among listed companies, MicroStrategy, a US software company, has seen its Bitcoin reserve strategy being increasingly emulated by other businesses. Since initiating its Bitcoin strategy in 2020, the company has purchased 214,400 Bitcoins at a cost of $7.5 billion, which is currently valued at $14.7 billion, resulting in a staggering profit of $7.2 billion.
Previously, Metaplanet, a Japanese Web3 infrastructure provider, announced on April 8th that it would increase its Bitcoin holdings by 100 million yen (approximately $6.6 million) on its balance sheet. As a result, its stock price has been soaring since April 8th, with a peak increase of over 500%. Although it has declined significantly since then, it still has a nearly 200% increase.
Will we see more companies embracing Bitcoin like Semler Scientific or Metaplanet in the future? Will this trend lead to more companies worldwide buying Bitcoin (as it seems to be helpful for stock prices)? This is worth our continued attention.