Semler Scientific Inc. has announced an ambitious strategy to significantly expand its Bitcoin holdings, targeting an increase from its current 3,800 BTC to 105,000 BTC by 2027.
The company plans to utilize a combination of equity, debt financing, and operational cash flow to fund this substantial Bitcoin acquisition. This move represents a deepening commitment to Bitcoin as a core treasury asset and reflects a growing trend of corporate adoption.
To spearhead this initiative, Semler Scientific has appointed Joe Burnett as Director of Bitcoin Strategy. Burnett brings experience from Unchained, Blockware Solutions, and Ernst & Young, tasked with optimizing the company’s Bitcoin acquisition strategies.
The expansion will occur incrementally, with targets set at 10,000 BTC by the end of 2024 and 42,000 BTC by 2026.
While Semler’s existing Bitcoin investments have yielded significant gains, showing a 287% unrealized profit totaling $177 million as of early June 2024 and ranking fourth globally in Bitcoin per share ratio among public companies, analysts express caution.
Concerns center on the potential risk of shareholder value dilution, particularly if the company’s stock price falls near its net asset value while pursuing aggressive Bitcoin accumulation. Semler’s stock has declined 41% year-to-date.
This strategy aligns with broader institutional interest in Bitcoin as a treasury reserve asset, exemplified by Japan’s Metaplanet also announcing plans for significant Bitcoin acquisitions.