Policies and Principles of
Semler Scientific, Inc.’s (Nasdaq: SMLR)
Bitcoin Treasury Strategy
In May 2024, Semler Scientific, Inc. (Nasdaq: SMLR) adopted Bitcoin as its primary treasury reserve asset.
- Store of Value and Investment
- Semler Scientific believes that Bitcoin is a reliable store of value and a compelling investment. With a market value exceeding $1 trillion, Bitcoin has become a major asset class.
- Its scarcity and finite supply make it a potential hedge against inflation and safe haven amid global instability.
- Bitcoin is often compared to gold, which has been viewed as a dependable store of value throughout history. The company views Bitcoin as a digital gold, with unique characteristics that set it apart from traditional assets.
- Architectural Resilience vs Gold
- Semler Scientific considers Bitcoin’s digital architecture more resilient than physical gold. Despite gold’s higher market value, Bitcoin’s technological advantages make it preferable.
- Bitcoin’s decentralized nature and robust security protocols contribute to its appeal.
- Growing Institutional Acceptance
- The January 2024 approval of 11 bitcoin exchange-traded funds by the Securities and Exchange Commission (SEC) demonstrates institutional acceptance.
- These funds have reported billions of dollars of net inflows from global banks, pensions, endowments, and investment advisors.
- It is estimated that institutions now hold more than 10% of all Bitcoins.
- Future Cash Utilization
- Semler Scientific is in a fortunate position of being a company that has consistently generated cash and has a strong balance sheet.
- After studying various alternatives and careful consideration, Semler Scientific concluded that investing in Bitcoin would be the best use of cash.
- Semler Scientific intends to use future cash flow from operations, as well as net proceeds from any securities offerings for general corporate purposes, including the acquisition of Bitcoin.
Merits of Semler Scientific’s Approach
- Potential Returns: If Bitcoin gains wider acceptance as digital gold, Semler Scientific’s investment could yield significant returns.
- Diversification: Adding Bitcoin diversifies their treasury holdings beyond traditional fiat currencies.
- Inflation Hedge: Bitcoin’s scarcity may protect against currency devaluation caused by inflation.
Risks and Considerations
This is for informational use only. It should not be viewed as legal, tax, investment, financial, accounting, or other advice. Nothing contained herein is meant to be a recommendation by Semler Scientific to buy, hold or sell bitcoin, cryptocurrencies, or other financial instruments.
A full list of risks and considerations can be found in our annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website at http://www.sec.gov.
Copies of certain information filed by us with the SEC are also available on its website under SEC Filings.
In summary, Semler Scientific’s Bitcoin strategy reflects its confidence in its long-term potential. However, it remains committed to its core medical products and services business while proactively evaluating their use of cash reserves.
Semler Scientific is not registered as an investment company under the Investment Company Act of 1940 and stockholders do not have the protections associated with ownership of shares in a registered investment company nor the protections afforded by the Commodities Exchange Act.
In this episode with Eric Semler, Chairman of Semler Scientific, we discuss:
Semler Scientific announcing a Bitcoin Treasury strategy
$SMLR stock soaring post-Bitcoin adoption
How MicroStrategy inspired Eric
Why public companies and boards are resistant to Bitcoin
Will we see more corporations add Bitcoin to the balance sheet?
Bitcoin has no cash flows! So what?
For current Bitcoin prices click here: Bitcoin (BTC) Latest Prices, Charts & Data | Nasdaq