Why Semler Scientific is betting everything on Bitcoin despite the risks?

Bitcoin is as fascinating as it is disturbing. Some see it as a hedge against inflation, others see it as too volatile. At the heart of this debate is that Semler Scientific is attracting attention by increasing its BTC purchases. This health technology company has now invested more than $192 million in the cryptocurrency. But why take such a gamble?

A massive acquisition emerges from the shadows

While some are predicting Bitcoin at $500,000 by 2025, Semler Scientific didn’t hesitate to invest another $23 million in cryptocurrencies.

The move brought its total reserves to 2,321 BTC, purchased at an average of less than $83,000 per coin. The company financed these purchases in part through the sale of stock, demonstrating its desire to turn things around. In such a volatile market, this audacity is astonishing.

With so many investments, Semler Scientific saw its “Bitcoin yield” increase to 99%. Behind this term is a calculation method aimed at measuring the company’s performance in relation to its BTC holdings.

Management hopes this figure will convince investors of the relevance of its strategy. But this approach raises questions: is the company trying to compensate for a lack of liquidity or capitalize on Bitcoin’s popularity?

Previously considered a “zombie company,” Semler Scientific sees bitcoin as a way to revive its finances.

The term “zombie” company refers to a business that is barely surviving and paying only enough of its debts to avoid insolvency. Here, BTC is seen as a growth catalyst. This vision breaks with the industry’s usual conservatism and shows that technological innovation can save businesses in trouble.

A risky bet on Bitcoin, but a potentially explosive return

Bitcoin remains unpredictable. Its price can skyrocket or drop suddenly within a few days.

Despite this volatility, Semler Scientific perseveres. Executives cite growing demand from businesses looking to protect their cash flows from inflation.

They also recall the example of MicroStrategy, a pioneer in the acquisition of BTC, whose stock market value has jumped since 2020. For Semler, speculative appeal wins out over caution.

This approach is not without its critics. Many fear that a sudden collapse could threaten the company’s financial health. Critics point out that this is a high-risk bet, especially when it comes to getting more BTC after a significant increase. However, Semler sees blockchain as a transformative tool for the monetary system. Regulators remain wary of this diversification logic.

At the same time, other companies such as Hoth Therapeutics or Rumble are following in the footsteps of Semler Scientific. They are turning to Bitcoin to boost their image and attract new investors. This trend shows that cryptocurrencies are no longer limited to tech giants. For Semler, being associated with the movement reassures his partners and proves his ability to predict market developments despite comparisons from JPMorgan’s CEO.

Evans S.

Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.