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Semler Scientific shifts to bitcoin as main treasury asset

EditorNatashya Angelica
Published 05/28/2024, 12:42 PM

SANTA CLARA, Calif. - Semler Scientific, Inc. (NASDAQ: NASDAQ:SMLR), known for its medical technology products, has announced the adoption of bitcoin as its primary treasury reserve asset. The company revealed a significant investment in the cryptocurrency, having purchased 581 bitcoins for $40 million. This strategic move reflects Semler Scientific's confidence in bitcoin as a reliable store of value and an investment with the potential for substantial returns.

Chairman Eric Semler stated the company's belief in bitcoin's unique characteristics as a finite asset and its advantages over traditional stores of value like gold. He cited the recent SEC approval of bitcoin exchange-traded funds as evidence of growing institutional acceptance.

Despite this new financial strategy, Semler Scientific remains committed to its core business in healthcare. CEO Doug Murphy-Chutorian emphasized the company's dedication to its customers and its flagship product QuantaFlo, used for peripheral arterial disease testing. Semler Scientific is also pursuing FDA clearance for expanded use of QuantaFlo in diagnosing other cardiovascular diseases.

The company's bitcoin strategy will be a key component of its treasury management, with further details to be provided on its website. Semler Scientific's decision to invest in bitcoin is part of a broader trend among companies diversifying their cash reserves into digital assets, although such investments carry inherent risks due to bitcoin's volatility.

This announcement is based on a press release statement from Semler Scientific, Inc. and reflects the company's current strategies and projections. As with all investments, particularly in volatile assets like bitcoin, there are risks and uncertainties that could affect the company's actual results.

InvestingPro Insights

In light of Semler Scientific's (NASDAQ: SMLR) recent strategic decision to adopt bitcoin as its primary treasury reserve asset, a deeper dive into the company's financial health may offer investors additional context. Semler Scientific's management has been assertively repurchasing shares, a move that often signals confidence in the company's value and prospects.

Moreover, the company maintains a strong liquidity position, with more cash than debt on its balance sheet, which could provide a cushion against the inherent volatility of its bitcoin investment.

From a valuation standpoint, Semler Scientific is trading at a low P/E ratio of 7.22, which is compelling relative to its near-term earnings growth. The company also boasts impressive gross profit margins, which stood at an enviable 89.43% over the last twelve months as of Q1 2024. Such robust margins may provide some stability as the company navigates the unpredictable cryptocurrency market.

Still, it is worth noting that analysts anticipate a sales decline in the current year. This forecast, coupled with the fact that the company's share price has fallen significantly over the last three months—a 51.37% price total return—suggests that investors should keep an eye on both the company's operational performance and its cryptocurrency strategy moving forward.

For those interested in a deeper analysis, there are additional InvestingPro Tips available for Semler Scientific, which could provide further insights into the company's financials and market performance. With the special promo code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information including the company's valuation implications based on strong free cash flow yield and its high return over the last decade.

Investors and potential investors can find out more about these and other metrics by visiting the dedicated page for Semler Scientific at https://www.investing.com/pro/SMLR, where they can access a total of 12 additional InvestingPro Tips to help inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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