Is Semler Scientific Adopting MicroStrategy’s Bitcoin Treasury Playbook?

On Tuesday, Semler Scientific, Inc. (Nasdaq: SMLR), a medical software program firm, announced that it had bought 581 bitcoins for about $40 million as a part of its “bitcoin treasury technique.”

Within the wake of the announcement, some paralleled the corporate’s technique to MicroStrategy’s, which has entailed changing virtually all of its treasury into bitcoin.

“I could not assist however discover what MicroStrategy achieved,” Semler Scientific Chairman Eric Semler instructed Bitcoin Journal.

“It is wonderful what they’ve completed. They’ve this nice story of taking an organization that was principally buying and selling on the market worth — its money was its full worth — and simply turning that money right into a development asset by way of their purchases of Bitcoin,” he added.

“It was a superb transfer on Michael Saylor’s half, and he is clearly confirmed himself with that technique.”

Whereas Semler clearly admires Saylor’s daring transfer, he appears a bit extra conservative in his strategy to including bitcoin to his firm’s treasury, as he acknowledged that Semler Scientific doesn’t plan to stray from its core mission — producing high-quality medical software program — because it makes bitcoin its main treasury asset.

“It’s important to go slowly and simply determine what the suitable strategy for you as an organization is,” stated Semler.

“We now have a medical machine software program enterprise. We now have to weigh the professionals and cons of that enterprise and our bitcoin investments,” he added.

With that stated, Semler appears to be a real Bitcoin believer.

“Philosophically, I see benefit within the argument that bitcoin is a extremely nice different to gold,” he stated. “I imagine in gold, however I imagine that bitcoin is type of gold with optionality.”

He went on to state how he appreciates Bitcoin’s excellent shortage, its technical sturdiness and its “architectural resilience.”

He additionally sees the writing on the wall in that Bitcoin is a expertise that the millennial technology is embracing, whereas bitcoin the asset nonetheless solely has roughly one tenth of the market capitalization of gold.

“I’ve change into a believer, and coinciding with that perception, I believed, perhaps shopping for bitcoin is a extremely good use of our extra money.”

And Semler Scientific has been flush with extra money, as its a “very high-margin enterprise,” based on Semler.

After contemplating choices like inventory buybacks or investing the money within the firm’s treasury to earn a yield, Semler and his board arrived on the thought of utilizing a notable portion of the money to purchase bitcoin.

Effectively-versed in capital markets in addition to in investing in small- and mid-cap (SMID-cap) businesses — corporations like Semler Scientific itself, which has a market cap of about $227 million — Semler is aware of that SMID-cap corporations have to do one thing in the event that they wish to stand out to traders.

“It takes loads for a SMID-cap firm to get the eye of traders,” defined Semler.

“When you are able to do one thing dynamic — like put money into digital gold when not loads of different persons are doing it — that’s significant and important,” he added.

“If I have been an investor, I’d take a better look simply because it’s differentiated.”

Semler Scientific’s inventory is at present buying and selling at simply over $32, roughly 50% larger than it was buying and selling earlier than its bitcoin treasury announcement.

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