Over two months after increasing its Bitcoin holdings to 3,192 BTC, Semler Scientific, a healthcare technology company, is gearing up to purchase more.
According to a filing with the SEC on Tuesday, Semler Scientific intends to raise up to $500 million through a new securities offering, which could enhance its Bitcoin reserves.
The filing included a shelf registration statement, allowing the company to issue multiple types of securities, such as common stock, preferred stock, debt securities, warrants, and units at various times, as indicated in the document.
In its prospectus, Semler stated that it will primarily utilize the net proceeds for general corporate purposes, including Bitcoin acquisitions. The firm has yet to provide details regarding the volume of its forthcoming Bitcoin purchase.
Additional uses of the funds could encompass working capital, research costs, and potential investments in technologies that align with its primary healthcare operations.
This fundraising initiative comes alongside a separate filing on Tuesday indicating that Semler Scientific has tentatively agreed to a settlement of $29.75 million with the U.S. Department of Justice to address allegations of violations of federal anti-fraud laws concerning its QuantaFlo product marketing.
In the filing, Semler indicated its intention to borrow funds from Coinbase to settle its obligations to the DOJ. The law enforcement agency has not yet responded to Decrypt’s request for comments.
The healthcare company will utilize its “cash on hand” along with proceeds from its loan agreement with Coinbase, and it intends to use its Bitcoin holdings as collateral for that loan.
Negotiations regarding the settlement commenced just four days after Semler Scientific increased its Bitcoin treasury by $88 million on February 7. At that time, the company reported generating a 152% yield from its Bitcoin holdings.
The Bitcoin treasury strategy that Semler Scientific adopted in May 2024 has significantly altered the company’s financial landscape.
Prior to this transition, the firm was termed a “zombie company” by its chairman, Eric Semler, despite being publicly listed on Nasdaq and profitable, its stock performance remained stagnant against a backdrop of substantial cash reserves.
Semler Scientific views Bitcoin as a “dependable store of value and an attractive investment,” as detailed in its S-3 filing.
Bitcoin is described as having “unique characteristics as a scarce and finite asset,” rendering it a “sensible inflation hedge and safe haven amid worldwide instability,” according to the company.
Semler ranks 12th among public companies in terms of Bitcoin holdings, according to data from Bitcoin Treasuries. Its stock price, SMLR, has decreased by 37% year-to-date, now standing at $34.40.
Edited by Sebastian Sinclair
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