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Semler's Bitcoin Surge: EPS Soars to $3.64 on Fair Value Rule

Coin WorldTuesday, Feb 18, 2025 4:38 pm ET

1min read

Semler Scientific, a technology company, reported a significant increase in its fourth-quarter earnings per share (EPS) to $3.64, following the revaluation of its Bitcoin holdings. The company adopted the new "fair value" accounting rule for corporate digital asset holdings, which led to a $28.85 million increase in the value of its Bitcoin stack.

The adoption of the Financial Accounting Standards Board (FASB) fair value rule, introduced in March 2024, allowed Semler Scientific to report its digital assets at market value. This resulted in total net income for the quarter of $29,206 million, a substantial increase from the $4.2 million reported in the same period a year earlier.

As of today, Semler Scientific continues to hold 3,192 Bitcoin, valued at over $300 million at the current price of approximately $95,000. The company's aggregate purchase price for these Bitcoin was $280.4 million.

The revaluation of Semler Scientific's Bitcoin holdings highlights the growing influence of cryptocurrencies on corporate balance sheets. As more companies adopt digital assets, the accounting treatment of these holdings is becoming an increasingly important issue. The FASB's fair value rule is designed to provide greater transparency in the reporting of digital assets, allowing investors to better understand the risks and opportunities associated with these holdings.

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