Semler Scientific, a medical device maker and healthcare technology company, has announced its decision to adopt bitcoin as its primary treasury reserve asset.
The company, known for developing products used in the detection of peripheral arterial disease, has purchased 581 bitcoins for an aggregate amount of $40 million, inclusive of fees and expenses.
TLDR
- Semler Scientific, a medical device maker, announced plans to adopt bitcoin as its primary treasury reserve asset.
- The company purchased 581 bitcoins for $40 million, inclusive of fees and expenses.
- Semler Scientific’s shares surged by as much as 37% after the announcement.
- The company believes bitcoin is a reliable store of value, a compelling investment, and a potential inflation hedge.
- Semler Scientific’s move follows a similar strategy employed by MicroStrategy, which has been aggressively buying bitcoin since 2020.
The announcement sent shockwaves through the financial markets, with Semler Scientific’s shares surging by as much as 37% on Tuesday.
This dramatic increase in stock price reflects the growing interest and confidence in bitcoin as a legitimate asset class, particularly within the corporate treasury management landscape.
Semler Scientific’s decision to embrace bitcoin as its primary treasury reserve asset is a strategic move that underscores the company’s belief in the cryptocurrency’s potential as a reliable store of value and a compelling investment opportunity.
Eric Semler, the company’s chairman, emphasized the unique characteristics of bitcoin as a scarce and finite asset, which he believes can serve as a reasonable inflation hedge and a safe haven amid global economic instability.
“Bitcoin is now a major asset class with more than $1 trillion of market value,” said Semler.
“We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability. We also believe its digital, architectural resilience makes it preferable to gold, which has a market value of approximately 10 times that of bitcoin.”
Semler Scientific’s move is reminiscent of the strategy adopted by MicroStrategy, a business intelligence firm that began purchasing bitcoin with its excess cash reserves in 2020.
MicroStrategy has been a pioneer in the corporate adoption of bitcoin, aggressively accumulating the cryptocurrency as a hedge against inflation and a potential source of significant returns.
While the decision to incorporate bitcoin into corporate treasury strategies is still relatively new, it has garnered attention and sparked discussions within the financial and corporate communities.
Proponents argue that bitcoin’s finite supply and decentralized nature make it a compelling alternative to traditional fiat currencies, which are subject to inflationary pressures and government intervention.
