MicroStrategy’s Success Inspired Semler Scientific’s Bitcoin Strategy Adoption

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In a recent interview, Eric Semler revealed what spurred his company, Semler Scientific, to adopt a Bitcoin Strategy.

Before making the move, Semler and the company’s board studied MicroStrategy’s success with its Bitcoin Strategy and discovered that adopting it would be valuable to Semler Scientific. 

Semler Scientific adopted its Bitcoin strategy barely a year after Eric Semler became the company’s active investor in April 2023. 

Why Semler Scientific Adopted a Bitcoin Treasury Strategy

Previously a flight surgeon during the Korean War, Dr. Herbert founded Semler Scientific, a medical device manufacturing company, in 2007, over two years before BTC came into existence. 

Years later, in May 2024, the company adopted a Bitcoin strategy, converting a significant portion of its cash holdings to BTC. Since then, Semler Scientific has been acquiring more BTC at every opportunity. 

During a Tuesday Interview, the company’s Chairman, Eric Semler, recounted his father, Herbert Semler’s reaction to the investment move. “He was so excited,” the Chairman noted. 

Further, Eric Semler revealed that his grandfather, Harry Semler, was an ardent gold investor. He noted that Harry Semler would have loved to see Semler Scientific invest in Bitcoin, which he described as the “new gold.”

While Herbert, the company’s founder, has retired and is no longer running the company, Eric has assumed an active role. He had been a passive investor in SMLR shares until he became the company’s Chairman of the board in April 2023.

Since Eric Semler assumed the Chairmanship position, a lot has changed at Semler Scientific. He is the mastermind behind the company’s adoption of Bitcoin as a reserve asset. Semler noted that MicroStrategy’s success in its BTC Strategy paved the path for the decision.

Under Michael Saylor’s leadership, MicroStrategy has aggressively acquired Bitcoin as a reserve asset. The company holds almost $14 billion in BTC, making it the largest institutional Bitcoin holder.

Semler noted that Saylor’s constant remarks about companies with chunks of cash that barely got noticed in the stock market resonated with Semler Scientific. So, they decided to study MicroStrategy’s success, discovering the value of adopting the Bitcoin strategy.

Selmer Scientific’s Bullish Bitcoin Purchase

After Semler Scientific adopted its new treasury strategy, its stock price skyrocketed. On May 29, SMLR soared over 30% after the company purchased $40 million in Bitcoin (581 BTC). 

MarketWatch data shows SMLR traded at a daily high of $32.24 after trading at $23 for nearly three weeks. The uptrend continued, with SMLR reaching $40.5 on June 12. 

According to the company’s 2024 Q2 earnings reports, Semler Scientific has acquired 929 Bitcoins worth $63 million at an average price of $68,000 per BTC. 

Due to the recent market downturn, the value of its Bitcoin holdings has declined by $10 million. With BTC currently trading at $57,500, Semler Scientific’s Bitcoin holdings are now worth approximately $53.4 million.

The August 5 financial report shows the company recorded an operational income of $5.4 million in Q2 2024. Eric Semler said the positive reactions to the company’s recent adoption of a Bitcoin treasury strategy encourage them to continue.

He affirmed the company’s bullishness on Bitcoin and noted its plans to acquire more. Semler also revealed Semler Scientific’s plans to buy more Bitcoin using proceeds from selling securities under its $150 million shelf registration statement.