Bitcoin News Today: Semler Scientific Boosts Bitcoin Holdings by 210 Coins, Stock Drops 22%

Semler Scientific, a medical technology company, has recently bolstered its Bitcoin holdings by purchasing an additional $25 million worth of the cryptocurrency. This acquisition, made in the first week of July, involved the purchase of 210 Bitcoin at an average price of $118,974 per coin. With this investment, Semler Scientific now holds approximately 4,846 Bitcoin, acquired for nearly $455 million and currently valued at $577.9 million. The company's strategic shift towards becoming a Bitcoin treasury company is backed by a $175 million capital raise through an at-the-market (ATM) offering in April. Semler Scientific aims to hold 105,000 BTC by 2027, which would represent 0.05% of all Bitcoin that will ever be produced.

Despite the significant investment in Bitcoin and the potential for substantial gains, Semler Scientific's share price has not responded positively. The company's stock has declined by 22% year-to-date, indicating that investors are not convinced by the Bitcoin strategy. Analysts suggest that the company's reliance on selling shares to finance its Bitcoin purchases may be contributing to the negative sentiment among investors. This dilution of shareholder value, combined with an underwhelming Q2 earnings report, has likely played a role in the stock's decline. The analyst also noted that not all Bitcoin treasury companies will be able to replicate the success of Strategy, the first publicly traded company to adopt a Bitcoin corporate reserve strategy.

In addition to its Bitcoin investments, Semler Scientific is facing legal inquiries related to its settlement discussions with the US Department of Justice. The inquiries stem from a possible violation of anti-fraud law relating to the company's QuantaFlo product. After disclosing the settlement discussions in February, Semler's stock price fell. In April, the company reached an agreement in principle with the DOJ to settle for $29.8 million. The legal issues, combined with the underperformance of the stock, have created a challenging environment for Semler Scientific as it navigates its transition to a Bitcoin treasury company.