Semler Scientific Files for $500 Million Capital Raise to Support Ongoing Investment Strategy
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Semler Scientific Files for $500 Million Raise to Fuel Bitcoin Investment Strategy
Semler Scientific, a healthcare technology company, has filed a new S-3 registration with the Securities and Exchange Commission (SEC) to raise up to $500 million. This massive capital raise is aimed at fueling its Bitcoin investment strategy.
According to the filing, the funds will be used for general corporate purposes, but a significant portion will be allocated towards purchasing more Bitcoin. The company currently holds 3,192 BTC, which it has been steadily increasing over time. In February this year, Semler added an additional 871 BTC at a cost of $88.5 million, paying an average price of over $101,000 per coin.
The company’s commitment to its Bitcoin strategy is unwavering, with CEO Eric Semler stating that he is “excited to buy more BTC.” Despite the recent decline in Bitcoin’s value below $99,000, Semler appears undeterred in its pursuit of increasing its stake in the cryptocurrency.
Semler’s bold move into Bitcoin is not just about diversification; it represents a significant shift in the company’s approach to finance. The firm believes that Bitcoin serves as both a hedge against inflation and a safe haven during times of global uncertainty. This strategy marks a notable departure from traditional methods, with Semler choosing to hold a large stake in a single asset instead.
The company is currently navigating a settlement agreement with the Department of Justice (DOJ) related to allegations surrounding the marketing of its QuantaFlo product. As part of this settlement, Semler plans to borrow $29.75 million from Coinbase and utilize its existing Bitcoin holdings as collateral. The remaining portion will be covered by drawing down on existing cash reserves.
While the company’s stock price has fallen 37% so far this year, it remains steadfast in its commitment to its Bitcoin strategy.
Source: https://coinpedia.org/news/semler-scientific-files-for-500-million-raise-to-fuel-bitcoin-investment-strategy/
