TLDR
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Semler Adds $20M in Bitcoin, Stock Slips on Weak Q2 Revenues
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Semler Buys More BTC, But Q2 Revenue Miss Drags Shares Down
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$508M in BTC: Semler’s Crypto Push Grows as Core Sales Slide
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Bitcoin Gains Soar, But Semler’s Q2 Sales Miss Weigh on Stock
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Semler Ups BTC Holdings to 4,636, Faces Revenue and Cost Pressures
Semler Scientific, Inc. (NASDAQ: SMLR) stock fell nearly 5% today, trading at $38.46, down from $40.45. The decline followed heightened early volatility and a sharp drop shortly after 9:00 AM. Trading volume stood at 238,981 shares, suggesting increased activity and market reaction.
The Nasdaq-listed healthcare technology company saw its market sentiment shift after disclosing key updates. These included preliminary financial results for Q2 and an aggressive expansion of its bitcoin holdings. Despite unrealized gains from Bitcoin, lower-than-expected revenue figures contributed to the downward stock movement.
Semler’s latest 8-K filing revealed the purchase of 187 bitcoins between June 4 and July 2 for $20 million. The company used proceeds from its ongoing ATM equity program, which raised $156.6 million through the sale of over 4.1 million shares. This move increased its total bitcoin holdings to 4,636 BTC, valued at approximately $508.4 million.
Bitcoin Buys Continue as Firm Grows Its Treasury Strategy
The company expanded its crypto portfolio during a broader trend of corporate bitcoin accumulation. Semler reported an average purchase price of $106,906 per bitcoin. Its total investment in Bitcoin stands at $430 million, including fees and expenses.
With the current market value of its bitcoin at over $500 million, Semler posted an unrealized gain of $90.5 million since March 31. The company’s BTC Yield, a key metric it uses to measure performance, rose to 29% year-to-date. This figure reflects the growth in its bitcoin holdings relative to its diluted share count.
Semler ranks 15th globally among public firms holding bitcoin, according to data from The Block. The firm joins companies like Metaplanet, GameStop, and others in applying a bitcoin-based capital allocation strategy. Notably, some rivals paused purchases recently while Semler maintained its pace.
Q2 Revenues Lag as Operating Costs Climb
Semler reported estimated Q2 revenues between $8.1 and $8.3 million, below expectations. Operating expenses for the quarter reached up to $10.5 million, including $2 million in non-cash costs. This revenue-expense gap highlighted short-term pressure on the company’s core financials.
The firm confirmed cash and cash equivalents totaled approximately $13.6 million at quarter’s end. While bitcoin gains helped its balance sheet, core operations appeared less robust in the short term. Management noted these financial results are preliminary and unaudited.
Despite crypto-related performance boosts, the stock showed signs of pressure amid broader scrutiny of fundamentals. The market reaction suggests concern over whether bitcoin gains can offset lower core business results. Final audited numbers are expected later, possibly influencing future sentiment.
Equity Offering Fuels Crypto Strategy, Dilution Impacts Shares
Semler continues to fund its bitcoin strategy through equity issuance. Its ATM program with six major firms allows up to $500 million in stock sales. So far, it has issued 4.1 million shares, boosting the total share count to 13.8 million.
This equity expansion provided capital but also diluted existing shareholders, which may explain part of the recent price drop. However, management believes the bitcoin-driven capital strategy adds value long term. The company updates performance KPIs regularly through a dashboard on its website.
Overall, Semler’s current positioning reflects a shift from traditional healthcare metrics toward crypto-linked valuation. With bitcoin volatility high, the company’s strategy will likely continue to draw market attention and debate.
