Semler Scientific Reports $41.8M Bitcoin Loss, Plans $500M Securities Sale

Semler Scientific, a healthcare technology firm, has reported significant paper losses on its Bitcoin holdings during the first quarter of this year. The company disclosed an unrealized loss of approximately $41.8 million from the change in fair value of its Bitcoin holdings since December 31, as per a filing with the Securities and Exchange Commission on April 15.

As of March 31, Semler held 3,182 Bitcoin valued at around $263.5 million. Over the three-month period, Bitcoin prices experienced a 12% decline, dropping from $93,500 at the start of January to $82,350 by the end of March. The full correction from its all-time high to the low below $75,000 on April 7 stands at 32%.

Despite the losses, Semler reported expected revenues of $8.8 to $8.9 million and operational losses of $1.3 to $1.5 million for the period. The company held cash and cash equivalents of approximately $10 million as of March 31.

In November, Semler Scientific CEO Doug Murphy-Chutorian emphasized the company's commitment to acquiring and holding Bitcoin while supporting innovation and growth in its healthcare business.

Semler is recognized as the twelfth largest corporate holder of Bitcoin, ahead of certain other major companies. Additionally, the firm reported reaching an agreement in principle to pay almost $30 million to settle claims related to a civil investigation by the Department of Justice.

In a separate filing on April 15, Semler announced its plan to offer and sell securities worth up to $500 million. This move is part of the company's strategy to continue its Bitcoin acquisition efforts. The firm stated, “We may offer and sell securities from time to time in one or more offerings, up to an aggregate value of $500,000,000.” Semler’s common stock is listed on the Nasdaq under the symbol SMLR.

The company intends to use the net proceeds from the securities sale “primarily for general corporate purposes, including the acquisition of Bitcoin.” This strategic move underscores Semler's ongoing commitment to Bitcoin as a key component of its financial strategy.