Healthcare company puts its $40M cash reserves into bitcoin
Chronic disease testing company Semler Scientific saw its stock surge 25% on Tuesday after it announced it plans to use its cash reserves to buy bitcoin. The company said bitcoin is now its primary reserve asset, having now purchased 581 bitcoins worth a total of $40M.
The company added that the decision to purchase digital currency was made after considering multiple alternative investments, including acquiring new businesses.
"Bitcoin is now a major asset class with more than $1 trillion of market value. We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability,” Eric Semler, chairman of Semler Scientific said in a statement. “We also believe its digital, architectural resilience makes it preferable to gold, which has a market value of approximately 10 times that of bitcoin.”
Semler said he was motivated to use the company’s excess cash to buy bitcoin after ETFs were approved to spot-match the price.
“These funds have reported more than $13 billion of net inflows, with investments from nearly 1,000 institutions, including global banks, pensions, endowments and registered investment advisors. It is estimated that more than 10% of all bitcoins are now held by institutions," Semler added.
The company reassured shareholders that it is not changing its core business and will continue to focus on medical products and services related to chronic disease diagnostics. Instead, it is hoping the bitcoin buys will grow its business and earn the attention of investors.
Semler Scientific’s stock sits at $29 a share, up 25% from market open to close on Tuesday.
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