Semler Scientific Triggers Market Volatility After Acquiring 455 Bitcoins Worth $50 Million

Semler Scientific triggered market volatility after acquiring 455 Bitcoin worth $50 million

Semler Scientific (NASDAQ:SMLR) stock price dropped on Wednesday morning after the company disclosed that it acquired 455 Bitcoin for $50 million. The company’s shares fell sharply in early trading hours, moving from over $46 to hit lows of $41.97.

However, Semler’s stock managed to recover slightly, reaching $43.09 by 1:07 PM EDT as investors absorbed the news and the company’s dual focus on healthcare and Bitcoin began to spark debate.

Semler’s Bitcoin Buys and Troubled Financials

Semler completed its latest Bitcoin purchase between May 13 and May 22, using proceeds from its equity offering to fund the deal. The company's at-the-market stock program, launched in April 2025, has issued 3,003,488 shares and raised $114.8 million in total.

The company paid an average price of $109,801 for each Bitcoin, buying 455 BTC in less than ten days. This brings Semler's total Bitcoin holdings to 4,264, currently valued at around $474.4 million.

The company stated that this strategy is now a core part of its treasury operations and future asset planning. It also created a Bitcoin Dashboard to maintain transparency with investors, keeping track of its BTC holdings and year-to-date yield.

The company's Bitcoin Yield, a key metric that tracks the year-to-date gains per share from its BTC holdings, reached 25.8% in 2025. This yield is being increasingly recognized by investors as a critical performance indicator, especially given the company's dual focus on healthcare and cryptocurrency.

Semler further emphasized that this investment aligns with its broader long-term strategic goals, a point of view that is likely to be debated among investors.

Company Financials and Pressing Issues

Despite its bold move on Bitcoin, Semler is facing financial strain. The company reported a net loss of $64.7 million in Q1 2025, and its revenue dropped 44% year-over-year. These issues might make the timing of its massive Bitcoin acquisition questionable in the eyes of some investors.

Moreover, Semler disclosed prior unrealized losses of $41.8 million on Bitcoin in 2023, an aspect that could be concerning given the volatility of the crypto market.

However, Semler has formalized its Bitcoin approach by forming a Bitcoin Strategy Committee and appointing Natalie Brunell, a known crypto advocate, to its board to oversee this transition. This appointment signals Semler's increasing commitment to cryptocurrency as a core asset class in its portfolio.

Investor Reactions and Analysis

The company's stock price activity and high trading volumes suggest that investors are interested in how Semler will balance its healthcare operations with the volatile digital assets.

Market analysts are also divided on whether Semler's dual focus can sustain long-term shareholder value, especially given the company's high-risk profile, which is also linked to a $30 million DOJ civil settlement case that remains unresolved and adds regulatory pressure to its business.

Despite the legal issues, management has maintained a positive outlook on its strategy, which has led it to become the 12th-largest corporate Bitcoin holder globally.

This places Semler ahead of companies like Boyaa Interactive and positions it alongside firms like Harvest Global Investments and Animoca Brands, which are already known for their digital asset strategies. The company's public Bitcoin dashboard supports compliance and transparency under SEC guidelines.

Semler's aggressive Bitcoin expansion also reflects broader 2025 trends, as over 40 public firms launched crypto treasury programs, pivoting their capital towards digital assets.

The move follows strategies by companies like MicroStrategy (NASDAQ:MCRL), which famously sold shares to fund its Bitcoin buys, a pattern that signals continued interest in Bitcoin despite market volatility.