SANTA CLARA, Calif. - Semler Scientific, Inc. (NASDAQ:SMLR), known for its healthcare technology products and impressive 88.05% gross profit margins according to InvestingPro, has recently expanded its bitcoin investment and updated its capital market activities. The company acquired an additional 211 bitcoins at an average price of $101,890 per coin between December 5 and December 15, using funds from its at-the-market (ATM) offering and operating cash flow. Semler Scientific's total bitcoin holdings now stand at 2,084 bitcoins, purchased for an aggregate $168.6 million, averaging $80,916 per bitcoin, inclusive of fees and expenses.
In conjunction with these acquisitions, Semler Scientific filed a second prospectus supplement on Monday to raise an additional $50 million through its ATM offering, in partnership with Cantor Fitzgerald & Co. This move increases the total amount offered under the ATM to $150 million, with the company having already generated approximately $100 million of gross proceeds as of December 13.
The company also highlighted its BTC Yield as a key performance indicator (KPI), reporting a yield of 67.0% for the period from October 1 to December 15, and a yield of 92.8% from July 1, after adopting its bitcoin treasury strategy, to December 15. BTC Yield reflects the percentage change in the ratio of bitcoin holdings to assumed diluted shares outstanding, which includes all shares that could result from the exercise of stock options. As of December 15, the assumed diluted shares outstanding was 9,967 thousand.
Semler Scientific uses this KPI to assess the performance of its strategy to acquire bitcoin in a way that is believed to be accretive to stockholders. However, the company acknowledges that the KPI has limitations and is not a measure of operational performance or liquidity, nor is it indicative of the stock's trading price.
The company's decision to invest in bitcoin and use it as a primary treasury asset is part of a broader strategy that also includes its flagship product, QuantaFlo®, a rapid test for diagnosing cardiovascular diseases. The strategy appears to be gaining traction, with the stock showing remarkable momentum - up 75.29% over the past six months, though trading at a relatively high P/E ratio of 29.45. For deeper insights into Semler Scientific's valuation and growth prospects, including 15+ additional ProTips and comprehensive financial analysis, visit InvestingPro. This news is based on a press release statement from Semler Scientific.
In other recent news, Semler Scientific, a medical technology firm, has reported mixed financial results for the third quarter of 2024, with revenues decreasing by 17% year-over-year to $13.5 million, while the income from operations remained robust at $5.1 million. This comes alongside the company's aggressive Bitcoin treasury strategy, which saw an acquisition of an additional 297 bitcoins, bringing its total holdings to 1,570 bitcoins.
Semler Scientific has also expanded its capital market activities, filing a prospectus supplement to offer an additional $50.0 million of shares under its at-the-market equity program. Despite the decline in revenues, the firm has seen a gain from the change in fair value of its Bitcoin holdings.
The company, which holds 1,058 Bitcoins as of November 5, 2024, is exploring additional financing options to further increase its Bitcoin holdings. Semler continues to innovate in its core medical product offerings, particularly its QuantaFlo device, and is seeking a new 510(k) clearance for an extension to this product, expected in the first half of 2025.
These recent developments indicate a dual focus for the company, balancing its core medical technology business with an assertive Bitcoin investment strategy. As Semler Scientific navigates this balance, stakeholders will observe how these dual priorities progress in the upcoming quarters.
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