KEY POINTS
- Semler's CEO said its $40M buy of Bitcoin highlights the company's belief in the digital asset's investment potential
- He said company leadership determined that holding Bitcoin was the 'best use' for Semler's excess cash
- A former real estate-focused firm also purchased more Bitcoin Tuesday as part of its 'Bitcoin-first' strategy
A U.S. non-crypto firm revealed Tuesday it has adopted a Bitcoin strategy, joining BTC maximalist MicroStrategy in the growing list of companies purchasing Bitcoin to further grow their businesses.
On Tuesday, Santa Clara-based Semler Scientific, which develops and markets healthtech products, said in a press release that it has purchased 581 BTC for an aggregate amount of $40 million, including fees and expenses.
"Our Bitcoin strategy and purchase of Bitcoin underscore our belief that Bitcoin is a reliable store of value and a compelling investment," said Eric Semler, the company's chairman. He also noted that the digital coin has "unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability."
Semler said the growing global acceptance of the world's first decentralized cryptocurrency has only been cemented further after the U.S. Securities and Exchange Commission (SEC) approved spot BTC exchange-traded funds (ETFs) in January.
He went on to note that the board and senior management of Semler did not take the decision to adopt a Bitcoin strategy lightly. Leaders examined various alternatives such as other cash uses and possible acquisitions to expand growth. However, they ultimately came to the conclusion that "holding Bitcoin would be the best use of our excess cash."
NEW: Healthcare company Semler Scientific stock rises over 30% after adopting #Bitcoin as primary treasury asset.
— Bitcoin Magazine (@BitcoinMagazine) May 28, 2024
The Bitcoin effect 🚀 pic.twitter.com/za6sEEhSbt
The healthcare company's stock surged over 30% after news of its BTC strategy adoption.
Semler Scientific's announcement came on the same day Japanese Web3 infrastructure provider Metaplanet revealed that the company's board had agreed to purchase "an additional 250 million yen (approximately $1.6 million) worth of Bitcoin."
*Metaplanet directors authorize purchase of additional ¥250 million of $BTC* pic.twitter.com/BqdHBwVGwy
— Metaplanet Inc. (@Metaplanet_JP) May 28, 2024
Metaplanet used to be a real estate-focused company but has since branched out to other services, including Web3 consulting. Before Tuesday's announcement, the Tokyo Stock Exchange-listed firm said earlier this month that it has "adopted Bitcoin as its strategic treasury reserve asset."
"Metaplanet's strategy unequivocally prioritizes a Bitcoin-first, Bitcoin-only approach for the Company," it said at the time.
*Strategic Treasury Transformation and Bitcoin Adoption by Metaplanet* pic.twitter.com/Uz5RxkBV2D
— Metaplanet Inc. (@Metaplanet_JP) May 13, 2024
The transition of Metaplanet to a Bitcoin-driven company and Semler Scientific's latest BTC buy comes as MicroStrategy, the world's largest publicly traded holder of the digital currency, continues to stick to its own Bitcoin strategy.
The tech firm, which announced earlier this year that it was transitioning into a Bitcoin development company, last acquired 122 more BTC for $7.8 million in April. It now has 214,400 BTC that it has been accumulating over the years. Notably, the April purchase was made at a time when Bitcoin was struggling to soar past $63,000 after the halving event.
As of writing, Bitcoin was trading between $67,000 and $68,000.
