Semler Stock Plunges On Expanding Bitcoin Bet, But Retail Cheers Bond Plan

Shares of Semler Scientific Inc. (SMLR) dropped more than 11% in early trading on Friday after the healthcare company announced it had increased the size of its convertible senior note offering to $85 million, up from the initially planned $75 million.

Meanwhile, other crypto-linked stocks like Genius Group Ltd. (6.7%), MARA Holdings Inc. (1.45%), Riot Platforms Inc. (6.2%) are others were in the green after President Donald Trump issued an executive order to create a cryptocurrency working group tasked with proposing new digital asset regulations as well as explore the creation of a “national digital asset stockpile.”

Semler stated it would raise the funds through a private offering of convertible senior notes set to mature in 2030, with some of the proceeds going toward corporate activities, including buying more Bitcoin.

The company also released its fourth quarter 2024 earnings results showing that its Bitcoin holdings have hit an unrealized gain of $28.9 million. 

Semler last bought 237 BTC on Jan. 13, bringing its total holdings to 2,321 BTC valued at around $241 million at the cryptocurrency’s current price of approximately $105,000.

“We are excited to continue executing on our Bitcoin treasury strategy,” Semler CEO Doug Murphy-Chutorian said in a statement.

Semler initially pivoted to include Bitcoin in its treasury in May, amid a plethora of publicly listed corporations buying the crypto hoping to see gains similar to Michael Saylor owned MicroStrategy (MSTR), which outpaced even Bitcoin’s 125% surge in 2024.

The preliminary financial results for the fourth quarter estimate revenue of between $12.1 million and $12.5 million and operating income ranging from $3.4 million to $3.7 million.

On Stocktwits, retail sentiment was largely bullish, despite the stock price dip, as users applauded the company’s decision to add to its Bitcoin treasury.

Investors on the platform lauded the decision to raise capital through convertible notes rather than an at-the-market (ATM) offering, a move that avoids shareholder dilution.

Semler now ranks 13th among publicly traded companies with Bitcoin in their treasury. 

However, while Semler’s stock has gained 20% over the past year, its gains pale in comparison to Bitcoin, which more than doubled in value during the same period. 

Year-to-date, the stock remains flat.

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