TLDR
- Semler Scientific reported Q2 2024 revenue of $14.5 million, down 22% year-over-year
- The company purchased an additional 101 bitcoins for $6 million, bringing total holdings to 929 bitcoins
- Q2 net income was only $11,000 due to a $5.1 million negative change in bitcoin fair value
- Semler is pursuing a bitcoin treasury strategy while maintaining its healthcare technology business
- The company beat analyst revenue estimates of $14.20 million for Q2
Semler Scientific, a healthcare technology company, has reported its financial results for the second quarter of 2024 while continuing to pursue its recently announced bitcoin treasury strategy.
The company posted revenues of $14.5 million for Q2, representing a 22% decrease compared to $18.6 million in the same period last year.
Despite the year-over-year decline, Semler’s Q2 revenue surpassed analyst estimates of $14.20 million by 1.87%.
Semler’s income from operations for the quarter stood at $5.4 million, down 25% from $7.2 million in Q2 2023. The company’s net income for the period was just $11,000, effectively breaking even on a per-share basis.
This sharp decline from $5.9 million in net income a year ago was largely attributed to a $5.1 million negative change in the fair value of Semler’s bitcoin holdings.
In May 2024, Semler Scientific announced the adoption of a bitcoin treasury strategy. Since then, the company has steadily increased its bitcoin purchases. As of August 5, 2024, Semler reported holding 929 bitcoins, acquired for a total of $63 million including fees and expenses.
The company’s most recent purchase, announced alongside its Q2 results, was an additional 101 bitcoins for $6 million. This follows earlier acquisitions of 581 bitcoins for $40 million in May, 247 bitcoins for $17 million in early June, and 49 bitcoins for $3 million in late June.
Semler’s Chairman, Eric Semler, expressed optimism about the company’s bitcoin strategy, stating,
“We are very encouraged by the strong positive reaction to our recent announcement of a bitcoin treasury strategy. We continue to firmly believe that bitcoin is a compelling investment and plan on acquiring additional bitcoins with our cash from operations.”
While pursuing its bitcoin initiative, Semler Scientific maintains its focus on its core healthcare technology business. The company’s flagship product, QuantaFlo, is a FDA-cleared rapid point-of-care test that measures arterial blood flow in the extremities to aid in diagnosing cardiovascular diseases.
CEO Doug Murphy-Chutorian emphasized this dual focus, saying, “We remain laser focused on acquiring and holding bitcoin, while supporting and expanding our healthcare business.”
Semler’s financial position as of June 30, 2024, included $7.3 million in cash and cash equivalents, down from $57.2 million at the end of 2023. This reduction primarily reflects the company’s significant bitcoin purchases during the first half of 2024.
The company’s bitcoin holdings had a fair value of $54.9 million as of June 30, reflecting a cumulative reduction in fair value of $5.1 million from the purchase price. Semler reports its bitcoin holdings as “intangible digital assets” on its balance sheet.
