Semler Scientific, an obscure medical technology firm, experienced a surge in its stocks on Tuesday after revealing its shift to utilizing bitcoin as its main treasury reserve asset, following the approach of MicroStrategy.
The company, involved in the development of products for peripheral arterial disease detection, also disclosed the acquisition of 581 bitcoins for around $40 million, encompassing fees and expenses.
The stock skyrocketed by 30% on Tuesday, while bitcoin experienced a slight decrease of about 2%, as per Coin Metrics. Semler, with a market capitalization of approximately $210 million, has faced a decline of over 30% this year.
“Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment,” stated Eric Semler, the chairman of Semler.
Semler Scientific jumps following announcement of bitcoin treasury strategy
“We believe it possesses distinct traits as a scarce and finite asset that can function as a reasonable hedge against inflation and a secure haven amid global uncertainty,” he remarked. “Given the discrepancy in value between gold and bitcoin, we are of the opinion that bitcoin holds the potential to yield disproportionate returns as it garners increasing recognition as digital gold.”
The action places Semler in parallel with MicroStrategy, which initiated an assertive bitcoin purchasing strategy in 2020 and has predominantly functioned as a barometer for the cryptocurrency’s price ever since. That stock has appreciated by about 163% this year.
Originally established as a provider of enterprise software, MicroStrategy announced this February its intent to shift its corporate focus and branding towards bitcoin development.
On Tuesday, Semler affirmed that the company will persist in concentrating on its core medical products and services and that as it continues to amass revenue and free cash flow from the sale of its blood flow tests, it will actively assess the utilization of surplus cash.
Tesla and Block are also among the corporations that retain a certain amount of bitcoin on their balance sheets.
Bitcoin has witnessed a 60% increase this year and is presently close to its peak. Many perceive the adoption by corporate treasuries as a superior indication of institutional acceptance, as opposed to prominent funds holding and possibly trading the cryptocurrency.
Nevertheless, the trend has not yet gained significant traction due to regulatory ambiguities and ESG considerations.
