SANTA CLARA, Calif. - Semler Scientific, Inc. (NASDAQ:SMLR), a company specializing in medical technology for chronic disease management, has increased its bitcoin investment with a recent purchase of 247 bitcoins, amounting to $17 million including fees and expenses. This acquisition, announced today, brings the company's total bitcoin holdings to 828, representing a cumulative investment of $57 million.
The firm's CEO, Doug Murphy-Chutorian, MD, emphasized the dual strategy of growing their healthcare business and augmenting their bitcoin portfolio. He stated, "The company now holds 828 bitcoins, underscoring our view that bitcoin is a compelling investment and can serve as a reliable store of value. We will continue to pursue our strategy of purchasing bitcoins with cash."
Semler Scientific is recognized for its flagship product, QuantaFlo®, a patented, FDA-cleared rapid test for assessing arterial blood flow in the extremities, which aids in diagnosing cardiovascular diseases such as peripheral arterial disease (PAD). The company is also in the process of seeking an expanded 510(k) clearance for additional indications for QuantaFlo, which is used by healthcare providers to evaluate the risk of mortality and major adverse cardiovascular events (MACE) in patients.
In addition to its healthcare technology ventures, Semler Scientific has adopted bitcoin as its primary treasury reserve asset, reflecting a broader trend among companies diversifying their investment portfolios with cryptocurrency.
The forward-looking statements in the company's announcement highlight their ongoing strategy to expand both their healthcare offerings and their bitcoin holdings. However, these statements also acknowledge the inherent risks associated with bitcoin investments, including market volatility and the implementation of new treasury strategies.
The information disclosed in this article is based on a press release statement from Semler Scientific, Inc.
In other recent news, Semler Scientific has been under the spotlight with several key developments. Lake Street Capital Markets reduced its share price target for Semler from $65 to $40, maintaining a Buy rating despite a disappointing Q1 earnings report. The company's earnings were influenced by a policy change from the Centers for Medicare & Medicaid Services, which is expected to impact Semler's performance throughout 2024. However, Semler is actively seeking FDA clearance for a new heart dysfunction product, a development not factored into the firm's financial model.
In a surprising move, Semler has adopted bitcoin as its primary treasury reserve asset, investing $40 million into 581 bitcoins. This strategic decision reflects the company's confidence in the digital asset, despite its inherent volatility. The company remains committed to its healthcare business and is pursuing FDA clearance for expanded use of its QuantaFlo product.
Semler's Q1 2024 financial results showed a 13% year-over-year decline in total revenues, landing at $15.9 million. Despite this, the company achieved growth in earnings compared to the same period last year. With a strong cash balance of $62.9 million, Semler is considering potential growth opportunities, including share buybacks. These are the recent developments surrounding Semler Scientific.
InvestingPro Insights
In light of Semler Scientific's (NASDAQ:SMLR) strategic investment in bitcoin and its ongoing healthcare technology advancements, a glance at the company's financial health and market performance offers additional insights. With a market capitalization of $205.69 million, Semler Scientific maintains a robust financial position, as indicated by its impressive gross profit margin of 89.43% for the last twelve months as of Q1 2024. This figure not only reflects the company's ability to manage costs effectively but also underscores its potential for sustained profitability.
An InvestingPro Tip worth noting is that Semler Scientific is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 9.04. This suggests that the company's stock may be undervalued given its earnings potential, presenting an opportunity for investors seeking growth at a reasonable price. Additionally, the company holds more cash than debt on its balance sheet, providing financial flexibility and a buffer against market uncertainties.
For investors interested in further analysis and additional InvestingPro Tips, such as the company's share buyback activity and liquid assets exceeding short-term obligations, visiting https://www.investing.com/pro/SMLR can provide a comprehensive view. With 10 more InvestingPro Tips available, users can gain deeper insights into Semler Scientific's financial nuances and market prospects. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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