Semler Scientific seeks $75M to enhance Bitcoin strategy

Semler Scientific has announced plans to raise $75 million through a private offering of convertible senior notes, aiming to bolster its Bitcoin (CRYPTO:BTC) strategy and support corporate initiatives.

The offering includes an additional $15 million option for initial purchasers, with notes convertible into cash or stock.

This initiative follows the company’s recent achievement of a 99.3% yield on its Bitcoin holdings, which currently total 2,321 BTC.

The convertible notes will mature in 2030 and will be senior unsecured obligations of Semler Scientific, with interest payable semiannually.

To mitigate potential dilution from the note conversions, the company plans to engage in capped call transactions with financial institutions.

These transactions are designed to offset the impact of dilution on the company's common stock and may involve various derivative transactions or stock purchases.

Despite these strategic moves, Semler Scientific's stock experienced a 12.5% decline following the announcement, reflecting investor concerns over share dilution.

Preliminary financial results for Q4 2024 indicate revenues between $12.1 million and $12.5 million, with an operating income ranging from $3.4 million to $3.7 million.

The company reported an unrealised Bitcoin gain of approximately $28.9 million, underscoring the effectiveness of its treasury strategy.

As of December 31, 2024, Semler held about $9 million in cash and equivalents, indicating strong liquidity for future initiatives.

Management remains focused on expanding Bitcoin holdings while continuing to grow its healthcare technology business.

This dual strategy aims to enhance stakeholder value amid the evolving cryptocurrency landscape and market conditions.

At the time of reporting, the Bitcoin (BTC) price was $103,329.