Semler Scientific Plans $500 Million Raise, Bitcoin Expansion Amid DOJ Settlement

Semler Scientific, a healthcare technology company, has filed with the Securities and Exchange Commission (SEC) to raise $500 million in new securities. This move comes after the company reached a $29.75 million settlement with the Department of Justice regarding marketing practices for its QuantaFlo product. The probe, which began in 2017, focused on potential violations of federal anti-fraud laws related to the marketing of the company's flagship product.

The settlement negotiations have been ongoing for several months, with the company cooperating with various subpoenas. Although the deal is not yet finalized, Semler has already secured a way to finance the payment. Instead of liquidating its cryptocurrency holdings, the company plans to use a loan from Coinbase, secured by its substantial Bitcoin reserves of 3,190 BTC, valued at approximately $267 million at current market prices. This strategy allows Semler to meet its legal obligations without selling its cryptocurrency assets, thereby maintaining its balance sheet strength.

In addition to the settlement expenses, Semler's S-3 registration filing with the SEC indicates that the company is not only raising funds to pay the DOJ but also aims to significantly increase its Bitcoin holdings. This move aligns with a broader trend among businesses accumulating Bitcoin. For instance, Michael Saylor’s firm recently purchased 3,450 bitcoins worth $286 million, and another company, Metaplanet, acquired $26 million worth of Bitcoin during the same period.

The timing of Semler’s intended Bitcoin purchases coincides with market volatility and forecasts of significant price appreciation. An analyst, known as “Titan of Crypto,” predicted that Bitcoin could reach $137,000, although no specific timeframe was provided for this price level. Semler Scientific has not specified when it will complete its securities offering or make further Bitcoin purchases. However, the SEC filing clearly indicates that expanding its cryptocurrency holdings remains a priority for the company, in addition to settling the DOJ case.