Semler Scientific Follows MicroStrategy’s Bitcoin Playbook, Raising  $2.5M for Its Latest BTC Purchase
2024-11-05

Semler Scientific, Inc. (Nasdaq: SMLR), a developer of technology products for healthcare providers, appears to be following MicroStrategy’s Bitcoin accumulation playbook, reporting continued BTC purchases alongside its third-quarter 2024 results. According to the firm’s press release, it added 47 bitcoins since late August, bringing its total holdings to 1,058 BTC purchased for $71.0 million.
Semler Scientific, renowned for its innovative medical products and services, primarily markets QuantaFlo®, a rapid point-of-care test cleared by the FDA. QuantaFlo® measures arterial blood flow in the extremities, assisting in the diagnosis of cardiovascular diseases, particularly peripheral arterial disease (PAD). The company is pursuing new 510(k) clearance to broaden QuantaFlo®’s applications, enabling healthcare providers to evaluate patients’ risks of mortality and major adverse cardiovascular events (MACE).
Like MicroStrategy, Semler is using multiple approaches to fund its Bitcoin acquisitions, including operating cash flow and an ATM (at-the-market) stock offering program. Through its ATM program launched in August 2024, the company has already raised approximately $2.5 million by selling 86,734 shares. The program, managed by Cantor Fitzgerald & Co., allows Semler to sell up to $50.0 million of its common stock.
The company’s chairman, Eric Semler, indicated they are also exploring additional financing opportunities specifically to acquire more bitcoin—a strategy that closely mirrors MicroStrategy’s repeated debt and equity raises for Bitcoin purchases.
The Santa Clara-based medical device company saw its revenue decline to $13.5 million in Q3, down 17% from $16.3 million in the same period last year. Despite this revenue drop, the company maintained profitability with operating income of $5.1 million, though this represented a 20% decrease from the prior year’s $6.3 million.
Net income showed slight improvement, reaching $5.6 million ($0.80 per basic share), up 2% from $5.5 million ($0.82 per basic share) in Q3 2023. The company’s bottom line benefited from an unrealized gain of $1.1 million from its Bitcoin holdings and a lower effective tax rate of 12%, compared to 21% in the previous year.
The company’s customer concentration remains high, with its two largest customers accounting for 73% of Q3 2024 revenues (44% and 29% respectively). This represents an increase in concentration from Q3 2023 when the top three customers made up 75% of revenue (36%, 28%, and 11%).
As of September 30, the company held 1,018 bitcoins with a fair value of $64.5 million, reflecting a cumulative reduction in fair value of $3.9 million. During Q3 alone, the company purchased 141 bitcoins for $8.4 million. Between the quarter’s end and November 4, it acquired an additional 40 bitcoins for $2.6 million.
Total operating expenses, including cost of revenues, decreased 16% to $8.4 million, compared to $10.0 million in the same quarter last year. Cost of revenues saw a slight increase of 4% to $1.2 million. Pre-tax income was $6.4 million, representing a 9% decrease from the previous year’s $7.0 million, though this figure includes the unrealized bitcoin-related gain.
Featured Image via Pixabay