Semler Scientific, a medical technology company, has boosted its Bitcoin reserves, yet the company's stock continues to decline in value.
Semler's Bitcoin Investments
Semler Scientific purchased 210 Bitcoin in the first week of July at an average price of $118,974 per coin, totaling around $455 million. The company currently holds 4,846 Bitcoin, valued at $577.9 million. It plans to accumulate a total of 105,000 BTC by 2027.
Semler's Stock Issues
Despite its aggressive cryptocurrency acquisition strategy, Semler Scientific's stock has fallen by 22% year-to-date. Analyst Nic Puckrin remarked, "The lackluster price performance of Semler Scientific shows that simply pivoting to a Bitcoin strategy isn't a panacea for all business troubles."
Company's Legal Troubles
Semler Scientific is also facing legal inquiries related to its settlement discussions with the US Department of Justice regarding potential anti-fraud law violations. Several law firms have begun encouraging investors to explore potential claims. In early disclosures, the company’s stock fell by 9.4% after investigations were revealed, but in April, there was an agreement to settle for $29.8 million.
Semler Scientific’s transition to a Bitcoin investment strategy has elicited mixed reactions from investors. Despite ambitious plans to increase Bitcoin holdings, the current state of the stock and legal issues may pose challenges for the company's future success.
