US-based Semler Scientific is doubling down on its Bitcoin bet with plans to raise $75 million through a private offering to fund more purchases.
Currently the company’s 13th largest holder of Bitcoin, the medical technology-focused company said in a recent interview press release It plans to offer $75 million of convertible senior notes due 2030 to qualified institutional buyers under Section 144A of the Securities Act.
A portion of the funds raised via the offering will be used to add more Bitcoin to its balance sheet while the rest will be allocated to fund covered call transactions to fund stock dilution from note transfers and broader operating and growth initiatives.
Semler Scientific said in June last year that it would occasionally sell securities across multiple offers to buy more bitcoin.
Last year, in November, the company sold 505,544 shares under a controlled stock offering agreement with Cantor Fitzgerald and raised $21.5 million through an at-market offering to fund similar acquisitions.
This announcement coincided with Semler’s Q4 2024 earnings report, which reported unrealized gains of $28.9 million from Bitcoin created on May 28, 2024.
Semler uses a metric called BTC Livel to track the success of his strategy. BTC Livet measures changes in the ratio of a company’s Bitcoin holdings to its outstanding diluted shares.
According to November advertisementbetween July 1 and November 15, 2024, reached 37.3%.
At the time, CEO Doug Murphy Choturian said the company was “laser focused on acquiring and holding bitcoin,” while company president Eric Simmer added that the company was exploring additional options to “acquire more bitcoin.”
The Santa Clara-based company began its Bitcoin journey with a $40 million investment in May, netting 581 BTC.
Since then it has continually expanded its holdings, acquiring an additional 2,084 BTC throughout the rest of 2024.
Its latest purchase, which was announced earlier this month, brought total Bitcoin holdings to 2,321 BTC, acquired at an average price of $82,687 per BTC.
Since its first purchase, Bitcoin has risen more than 55% so far, fueled by a bull market that began after President Donald Trump took a win in November.
Bitcoin as a corporate asset
Semler Scientific is one of several publicly traded companies that instigated the Bitcoin-First strategy, originally popularized by MicroStrategy.
The Michael Saylor-led company is currently the largest corporate holder of Bitcoin, with 461,000 BTC as of press time, worth approximately $49 billion.
A wave of other companies have followed a similar path, including drug maker Hoth Therapeutics, Group Genius, Rumble Alterbe, and Japan’s Planet Definition, among others, and they have all added Bitcoin to their corporate bonds.
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