The investment strategy of MicroStrategy, a US-listed company, to invest in Bitcoin is being followed by more and more companies. On Tuesday, Semler Scientific, a US medical technology company, 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 more than 24% in a single day.
Semler Scientific is a US-listed medical technology company that primarily develops products for the detection of peripheral artery disease. It has no connection with 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 acquire 581 Bitcoins, causing its stock price to increase by 24.36%.
Semler Scientific currently has a market value of $2.05 billion and has experienced a decline of over 36% this year. However, after announcing the purchase of Bitcoin, its stock price surged and reached a two-month high, highlighting the significant impact of the Bitcoin investment strategy on the stock price in the short term.
Eric Semler, the Chairman of Semler Scientific, expressed through a press release that the company’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. Eric Semler pointed out that the board of directors and senior management of Semler Scientific spent a lot of time researching the potential uses of the company’s cash, including acquisitions. After studying various alternatives, they believe that holding Bitcoin would be the best use of the company’s excess cash.
Semler Scientific stated that with its Bitcoin reserve strategy, the company will continue to focus on its core medical products and services and 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 its primary reserve asset, although this may be adjusted depending on market conditions and the company’s cash needs.
Following in the footsteps of MicroStrategy, a global leader in Bitcoin holdings, which has purchased 214,400 Bitcoins at a cost of $7.5 billion since implementing its Bitcoin strategy in 2020, with the current value reaching $14.7 billion and a profit of $7.2 billion, more and more companies are imitating its Bitcoin investment strategy.
Previously, on April 8th, Metaplanet, a Japanese Web3 infrastructure provider, announced that it would increase its Bitcoin holdings on its balance sheet by 1 billion yen (approximately $6.6 million). As a result, its stock price has been continuously soaring since April 8th, with the highest increase exceeding 500%. Although it has fallen significantly, it still has a gain of nearly 200%.
Will we see more and more companies embracing Bitcoin like Semler Scientific or Metaplanet? Or even driving more companies worldwide to buy Bitcoin (as it appears to be helpful for stock prices)? This is worth our continued attention.