The investment strategy of MicroStrategy, a US-listed company, to invest in Bitcoin has been followed by more and more enterprises. On Tuesday, Semler Scientific, a US medical technology company, announced that it would spend $40 million to purchase 581 Bitcoin as the company’s primary reserve. Encouraged by this news, the company’s stock price skyrocketed by over 24% in a single day.
Semler Scientific is a US-listed medical technology company that primarily develops products for detecting peripheral artery diseases. 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 about $40 million (including costs and expenses) to purchase 581 Bitcoin, causing its stock price to surge by 24.36%.
Semler Scientific’s current market value is $2.05 billion, with a decline of over 36% so far this year. However, after announcing the purchase of Bitcoin, its stock price soared, reaching a two-month high. In the short term, the significant impact of the Bitcoin investment strategy on the stock price is evident.
Chairman of Semler Scientific, Eric Semler, praised the potential of Bitcoin through a press release. He stated that Semler Scientific’s Bitcoin reserve strategy and the purchase of Bitcoin highlight the company’s belief that Bitcoin is a reliable store of value and an attractive investment. Eric Semler pointed out that Semler Scientific’s board of directors and senior management spent a lot of time researching the potential uses of the company’s cash, including acquisitions. After studying various alternative solutions, they believe that holding Bitcoin would be the best use of the company’s excess cash.
Semler Scientific stated that, in combination with its Bitcoin reserve strategy, the company will continue to focus on its core medical products and services. It will continue to 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 serve as the company’s primary reserve asset. However, this situation may be adjusted depending on market conditions and the company’s cash needs.
Following the footsteps of MicroStrategy, a global listed company and the leader in Bitcoin holdings, more and more enterprises have been imitating its Bitcoin reserve strategy. Since launching its Bitcoin strategy in 2020, MicroStrategy has purchased 214,400 Bitcoin 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 1 billion yen (approximately $6.6 million) on its balance sheet. As a result, its stock price has been soaring since April 8th, with the highest increase exceeding 500%. Although it has fallen significantly, it still has an increase of nearly 200%.
Will we see more companies embracing Bitcoin like Semler Scientific or Metaplanet in the future? Will it even drive more companies worldwide to buy Bitcoin (as it seems to be beneficial for stock prices)? This is worth our continued attention.