The medical device manufacturer has just announced its first convertible bond offering to buy more Bit. However, the company's stock has "fallen into a pit" over the past two days.
Semler Scientific raised $75 million to "buy more" Bit. Image: BTC Times
Healthcare technology and software company Semler Scientific announced plans to raise an additional $75 million through a convertible bond offering, maturing in 2030 with an annual interest rate of 4.25%. Most of this money will be used to buy more Bit, strengthening the company's long-term investment strategy.
$SMLR Announces Proposed Private Offering of $75 million of Convertible Senior Notes and Preliminary Unaudited 4th Quarter 2024 Financial Results with Significant Gain from Change in Fair Value of Bit Holdings
— Eric Semler (@SemlerEric) January 23, 2025
According to the Q4 2024 financial report, Semler currently owns 2,321 BTC, achieving an unrealized profit of $28.9 million from this investment. On January 13, the company bought an additional 237 BTC, increasing the total value of its Bit assets to $241 million, based on the current trading price of around $105,000 per coin.
Semler first joined the Bit race last year, with 581 BTC purchased on May 28. This announcement caused the company's stock price to surge 30%. CEO Doug Murphy-Chutorian has previously stated that Semler will maintain a strong focus on buying and holding Bit.
Bit has achieved many important milestones recently, with a new high of $109,000 just before US President Donald Trump's inauguration on January 20. This record-high price continues to reinforce Semler's confidence in its investment strategy.
Although the SMLR stock has risen more than 30% after the initial Bit purchase and nearly 40% over the past 12 months, the current price is still lower than the ATH of $149.99 set in October 2021.
Surprisingly, after announcing the recent capital raising plan, Semler's stock price fell 2% on January 23, and then continued to plummet more than 10% over the past two days to $55.46, according to Google Finance.
Semler Scientific's stock price over the past 5 days. Source: Google Finance (January 25, 2025)
Semler is not the only company placing strong faith in Bit. Other organizations such as Hoth Therapeutics (pharmaceuticals), Genius Group (AI development), and Rumble (a Youtube-like video platform), KULR Technology Group (energy sector) have also purchased Bit.
This strategy originated from MicroStrategy, the giant that is setting records with 11 consecutive weeks of Bit purchases, and is also the public company with the most Bit holdings in the world. The company of billionaire Micheal Saylor also has the ambition to raise an additional $42 billion over 3 years to "all in" on Bit.
According to Bit Treasuries, MicroStrategy currently owns 461,000 BTC, worth around $48 billion, far exceeding any other public company. Meanwhile, Semler ranks 13th in terms of Bit holdings.
Top public companies holding the most Bit. Source: Bit Treasuries (January 25, 2025)
Compiled by Coin68
