Benzinga - Semler Scientific, Inc. (NASDAQ:SMLR) shares are trading higher on Tuesday after the company announced that its board of directors adopted bitcoin as its primary treasury reserve asset.
In addition, Semler Scientific announced that it had purchased 581 bitcoins for an aggregate amount of $40 million, inclusive of fees and expenses.
Bitcoin will serve as the primary treasury holding on an ongoing basis, pending market conditions and Semler Scientific’s anticipated cash requirements.
“Bitcoin is now a major asset class with more than $1 trillion of market value. We believe it has unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability,” said Eric Semler, Semler Scientific’s chairman.
“Given the gap in value between gold and bitcoin, we believe that bitcoin has the potential to generate outsize returns as it gains increasing acceptance as digital gold,” Semler added.
Semler Scientific’s board and senior management have spent substantial time examining potential uses of cash, including acquisitions. “After studying various alternatives, we decided that holding bitcoin would be the best use of our excess cash,” said Semler.
In conjunction with its bitcoin treasury strategy, Semler Scientific will continue to focus on its core medical products and services.
Semler Scientific plans to assess its surplus cash while QuantaFlo sales generate revenue and free cash flow.
“We remain dedicated to our customers and our goal of operating a growing and profitable healthcare company,” said Doug Murphy-Chutorian, Semler Scientific’s chief executive officer.
Price Action: SMLR shares are trading higher by 28% to $29.85 at last check Tuesday.
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