US-listed company MicroStrategy’s strategy of investing in Bitcoin is being followed by more and more companies. On Tuesday, US medical technology company Semler Scientific announced that it will invest $40 million to purchase 581 Bitcoins as its primary reserve. Encouraged by this news, the company’s stock price surged over 24% in a single day.
Semler Scientific is a US-listed medical technology company that primarily develops products for detecting peripheral artery disease, which has no connection to Web3. However, the company announced on Tuesday that it has decided to adopt Bitcoin as an important reserve asset. It has invested 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, with a decline of over 36% since the beginning of this year. However, the company’s stock price surged to a two-month high after the announcement of its Bitcoin purchase, highlighting the significant impact of the Bitcoin investment strategy on the stock price in the short term.
Semler Scientific Chairman 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 demonstrate the company’s belief that Bitcoin is a reliable store of value and an attractive investment. After conducting extensive research on the potential uses of the company’s cash, including acquisitions, the board of directors and senior management of Semler Scientific concluded that holding Bitcoin would be the best use of the company’s excess cash.
Semler Scientific stated that, in conjunction 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 primary reserve asset. However, this situation may be adjusted according to market conditions and the company’s cash needs.
As the global leader in Bitcoin holdings among listed companies, US software company MicroStrategy’s Bitcoin reserve strategy has been increasingly emulated by other companies. Since launching its Bitcoin strategy in 2020, MicroStrategy has purchased 214,400 Bitcoins at a cost of $7.5 billion, which are currently valued at $14.7 billion, resulting in a staggering profit of $7.2 billion.
Previously, Japanese Web3 infrastructure provider Metaplanet announced on April 8 that it would increase its Bitcoin holdings by ¥1 billion (approximately $6.6 million) on its balance sheet. As a result, its stock price skyrocketed, with the highest increase exceeding 500%. Although it has since declined 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 they even drive more companies around the world to buy Bitcoin (as it seems to be beneficial for stock prices)? This is something we should continue to monitor.