Despite Unrealized Losses, Semler Scientific Plans $500 Million Securities Offering To Boost Bitcoin Holdings

Healthcare technology company Semler Scientific Inc. SMLR announced its latest securities offering Tuesday to add to its fast-expanding Bitcoin BTC/USD stockpile.

What happened: In a Form S-3 registration statement with the SEC, the firm proposed to offer $500 million in securities, including debt securities, common stock, units, and warrants.

"We intend to use the net proceeds from the sale of any securities offered under this prospectus primarily for general corporate purposes, including the acquisition of Bitcoin," Semler said.

Semler adopted Bitcoin as its primary treasury reserve asset in May 2024, funding its purchases through corporate maneuvers such as equity and debt financings, as well as cash flows from its operations.

Earlier in January, the firm issued convertible bonds worth $85 million and used proceeds from the transaction to add to its Bitcoin reserves.

Metaplanet owned 3,192 BTCs worth $280 million as of this writing, making it the 12th-largest corporate holder of the leading cryptocurrency, according to BitcoinTreasuries data.

Interestingly, the decision to buy more comes despite the firm’s 5% unrealized loss on Bitcoin assets.

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Why It Matters: Semler's fundraising efforts come amid a broader trend of corporate Bitcoin adoption, evangelized by Michael Saylor's Strategy Inc. MSTR, the world's biggest BTC hoarder.

Japan-based Metaplanet Inc. MTPLF, currently the tenth-largest corporate Bitcoin holder, has followed the same playbook.

In other news, Semler reached a $29.75 million settlement with the Justice Department, resolving claims of violations of a federal anti-fraud law related to its marketing of a product known as QuantaFlo.

Price Action: At the time of writing, Bitcoin traded at $83,169.20, down 3.11% in the last 24 hours, according to data from Benzinga Pro.

Semler shares were down 0.15% in after-hours trading after closing 0.41% higher at $34.40 during Tuesday’s regular session.

The stock demonstrated high momentum—the measure of a stock’s relative strength based on its price movement patterns and volatility over multiple timeframes—as of this writing. Visit Benzinga Edge Stock Rankings to compare how other Bitcoin-buying companies like Strategy score on this metric.

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