Today is Tuesday Semler Scientific, Inc. The Nasdaq-listed company (Nasdaq SMLR) is a software developer for the medical industry. announced The company purchased 581 Bitcoins at a cost of $40 Million as part its “bitcoin treasury strategy.”
Some compared the strategy of the company to that of MicroStrategy, who converted almost their entire treasury in bitcoin.
Caught me👀
Semler Scientific today announced the launching of a brand new search engine. #bitcoin Treasury strategy is similar to Microstrategy @saylor
Purchased $BTC 8% enterprise value
– 5X EV/EBITDA
The ratio of 8X is the P/E.The following are some of the ways to get in touch with each other #smallcap The latest version is available. $MSTR You can also find out more about the following: $SMLR Russell 2000 $IWM ?https://t.co/5RGbreCTaj pic.twitter.com/vajSZM4zUz
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) May 28, 2024
“I couldn’t help but notice what MicroStrategy accomplished,” Bitcoin Magazine quotes Eric Semler, Chairman of Semler Scientific.
“It’s amazing what they’ve done. They have this great story of taking a company that was basically trading at the market value — its cash was its complete value — and just turning that cash into a growth asset through their purchases of Bitcoin,” He also added.
“It was a brilliant move on Michael Saylor’s part, and he’s obviously proven himself with that strategy.”
While Semler clearly admires Saylor’s bold move, he seems a bit more conservative in his approach to adding bitcoin to his company’s treasury, as he stated that Semler Scientific doesn’t plan to stray from its core mission — producing high-quality medical software — as it makes bitcoin its primary treasury asset.
“You have to go slowly and just figure out what the right approach for you as a company is,” Semler said
“We have a medical device software business. We have to weigh the pros and cons of that business and our bitcoin investments,” He also added.
Semler appears to be a Bitcoin true believer.
“Philosophically, I see merit in the argument that bitcoin is a really great alternative to gold,” He said. “I believe in gold, but I believe that bitcoin is kind of gold with optionality.”
Then he went on to say how much he appreciated Bitcoin for its perfect scarcity and technical durability. “architectural resilience.”
Bitcoin, he says, is the technology of choice for the younger generation. However the value of bitcoin as an asset is still less than a tenth that of gold.
“I’ve become a believer, and coinciding with that belief, I thought, maybe buying bitcoin is a really good use of our excess cash.”
Semler Scientific, on the other hand, has always been flush with money. “very high-margin business,” According to Semler.
Semler decided that after considering other options, such as buying back stock or investing cash into the company’s Treasury to generate a higher yield, a large portion of this cash would be used to buy Bitcoin.
Well versed in the capital markets and investing small- and mid-cap (SMID-cap) businesses — companies like Semler Scientific itself, which has a market cap of about $227 million — Semler knows that SMID-cap companies need to do something if they want to stand out to investors.
“It takes a lot for a SMID-cap company to get the attention of investors,” Semler, explained
“When you can do something dynamic — like invest in digital gold when not a lot of other people are doing it — that’s meaningful and significant,” Added he.
“If I were an investor, I’d take a closer look just because it’s differentiated.”
Semler Scientific shares are currently worth just over 32 dollars, which is about 50% higher than they were before it announced its Bitcoin Treasury announcement.
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Source: bitcoinmagazine.com
