Semler Scientific Reports $41.8 Million Bitcoin Loss, Plans $500 Million Securities Offering

Semler Scientific, a healthcare technology firm, has reported significant losses on its Bitcoin holdings, amounting to approximately $41.8 million. This loss comes as a result of the cryptocurrency's price correction, which saw Bitcoin's value drop from $93,500 at the start of January to about $82,350 by the end of March, a 12% decline. Despite these losses, the company remains committed to its Bitcoin acquisition strategy, holding a portfolio of 3,182 BTC valued at around $263.5 million as of March 31.

Semler Scientific's CEO, Doug Murphy-Chutorian, has emphasized the company's dedication to acquiring and holding Bitcoin while supporting innovation and growth in its healthcare business. The company's financial outlook for the period indicated expected revenues between $8.8 million and $8.9 million, with operational losses estimated between $1.3 million and $1.5 million. Additionally, Semler holds approximately $10 million in cash and cash equivalents, providing some liquidity as they navigate these challenging times.

In response to these financial challenges, Semler Scientific has proposed a $500 million securities offering. This initiative, detailed in an SEC filing, aims to enhance the company's Bitcoin holdings and support its broader strategic goals. The filing states that the company may offer and sell securities from time to time in one or more offerings, up to an aggregate value of $500 million. This move comes as the company's stock, traded under the ticker symbol SMLR on Nasdaq, has seen volatility, with shares dropping about 36% since the start of 2025.

Semler Scientific's commitment to Bitcoin remains steadfast despite the recent losses and regulatory challenges. The company has reached an agreement to pay nearly $30 million to settle claims related to a civil investigation by the Department of Justice. This settlement reflects the growing regulatory scrutiny that many firms face in the intertwining worlds of healthcare and cryptocurrency. The funds raised from the securities sale will primarily be directed towards general corporate purposes, with a significant portion allocated for Bitcoin acquisitions. This dual focus on innovation within healthcare and strategic investments in digital assets positions Semler as a unique player at the intersection of technology and finance.

In summary, while Semler Scientific faces significant losses from its Bitcoin investments, the proposed $500 million securities sale signifies a resolute strategy to strengthen its cryptocurrency portfolio. As the market evolves, Semler’s actions could serve as a barometer for how healthcare technology firms engage with digital assets amid financial turbulence. With a focus on acquisition and a commitment to growth, Semler aims to navigate the complexities of both healthcare and cryptocurrency effectively.