Semler Scientific Reports $41.8 Million Unrealized Loss on Bitcoin Holdings in Q1 2025
Semler Scientific, a company specializing in healthcare technology, has disclosed a significant unrealized loss of approximately $41.8 million concerning its Bitcoin investments for the first quarter of 2025. This decline is attributed to Bitcoin’s value decreasing by 12%, dropping from $93,500 at the start of January to $82,350 by the end of March.
Current Bitcoin Holdings
As of March 31, Semler’s holdings include 3,182 Bitcoin, which are valued at around $263.5 million, according to an SEC filing dated April 15. This positions Semler as the twelfth largest corporate Bitcoin holder, surpassing Hong Kong’s Boyaa Interactive International Limited in the rankings.
Financial Expectations and Operational Losses
The medical device company has projected revenues between $8.8 million and $8.9 million for the quarter, alongside reporting operational losses estimated between $1.3 million and $1.5 million for the same timeframe.
Settlement with the Department of Justice
In the SEC filing, Semler also revealed that it has reached a preliminary agreement to pay nearly $30 million to resolve claims stemming from a civil inquiry by the Department of Justice (DOJ). These allegations pertain to violations of federal anti-fraud laws linked to the marketing of the company’s QuantaFlo product. To cover the $29.75 million settlement, Semler plans to secure a loan from Coinbase, using its Bitcoin assets as collateral, supplemented by approximately $10 million in cash as of March 31.
Timeline of Settlement Discussions
Negotiations for the settlement commenced just four days after Semler invested $88 million in additional Bitcoin on February 7. At that point, the company reported achieving a remarkable yield of 152% from its Bitcoin investments.
Aspirations for Fundraising
In another filing on April 15, Semler revealed its intention to offer and sell up to $500 million in securities. The proceeds are primarily aimed at supporting general corporate activities, including further acquisitions of Bitcoin. The registration statement would permit the company to issue a variety of securities over time, including common stock, preferred stock, debt securities, warrants, and units.
Stock Performance and Investor Advisory
Semler’s stock trades on the Nasdaq under the ticker SMLR. The company has warned its investors regarding the volatility of its stock price, which has plummeted by 36% since the start of 2025.
Additional Uses for Raised Capital
Beyond Bitcoin purchases, the raised funds may be allocated for working capital, research initiatives, and potential investments in technologies that align with Semler’s core healthcare operations. However, the company has not disclosed details regarding the anticipated size of its next Bitcoin acquisition.
Commitment to Bitcoin Strategy Despite Losses
Despite facing paper losses, Semler remains dedicated to its Bitcoin investment strategy. CEO Doug Murphy-Chutorian has emphasized the company’s focus on acquiring and retaining Bitcoin while fostering innovation and growth within its healthcare sector.
Transition to Bitcoin Treasury Strategy
Semler initiated its Bitcoin treasury strategy in May 2024. Prior to this strategic shift, the firm had been referred to as a “zombie company” by its chairman, Eric Semler, due to its stagnant stock performance despite possessing substantial cash reserves.
Bitcoin as a Financial Hedge
In its S-3 filing, Semler characterized Bitcoin as having “unique characteristics as a scarce and finite asset.” The company perceives Bitcoin as a viable hedge against inflation and a safe haven amid global financial instability.
Previous Bitcoin Investments
In December 2024, Semler made an earlier acquisition of 303 Bitcoin at an average price of $96,779, which increased its total holdings to 1,873 Bitcoin. In its recent purchasing activity between January and early February 2025, the company paid an average of $101,616 per Bitcoin.
Market Correction and Future Outlook
As Bitcoin experienced a correction from its all-time high to a low point below $75,000 on April 7, this represented a decline of 32%. In spite of these losses, Semler continues to regard Bitcoin as a dependable store of value and a compelling investment opportunity.
