Zoom Faces Pressure to Shake Up Treasury Strategy, Bitcoin Touted as a Potential Solution

A new development is brewing in the internet industry as Zoom Video Communications faces pressure to shake up its treasury strategy.

Despite having a massive cash reserve of $7.7 billion, video conferencing behemoth Zoom has come under increasing pressure to reassess its treasury strategy. Among those observing this situation is Eric Semler, head of Semler Scientific, who has suggested that Zoom consider exploring Bitcoin as a potential strategy to revitalize its fortunes.

Pandemic Star’s Dramatic Trip From GraceA meteoric rise in the face of the COVID-19 pandemic has been replaced by a questionable reality in the story of Zoom's journey. Once a Wall Street darling, Zoom’s stock has taken a hit, decreasing by 40% over the past three years, lagging behind the S&P 500’s performance by 73%.

The company’s five-year forecast is even more dismal, with its projections lagging behind the market as a whole by over 84%. These numbers not only indicate financial performance but also an organization’s attempt to establish its place in a post-pandemic society.

Semler highlights this point, stating that “Zoom has struggled to find a second act to reignite momentum, despite aggressive reinvestment and acquisition attempts.”The Bitcoin Solution: A Bold Or Reckless Move?Semler's observation is not only garnering attention but also raising questions within the finance industry. In fact, he doesn’t mince words, describing Zoom’s current status as that of a “Zombie” and a “sore thumb.”

His own company, Semler Scientific, has already bet heavily on Bitcoin, acquiring 3,192 BTC including recent purchases of 871 units for $88.5 million.

Love the excitement out there for the Zombie Zone! There are plenty of Zombie companies to choose from across various industries, but one stands out like a sore thumb – and of course, it starts with Z.

Zombie Zone company #1: Zoom Communications

— Eric Semler (@SemlerEric) February 13, 2025

The medical technology company's stock price has doubled over the past year, though attributing this solely to their Bitcoin approach would oversimplify matters. With access to favorable credit terms and $2 billion in annual cash flow, Zoom could theoretically join the ranks of the largest corporate Bitcoin holdings practically overnight.

ZM stock price. Source: TradingViewThe argument centers on a fundamental question facing modern companies: how to navigate treasury management in an era of booming digital assets. Zoom’s situation is paradoxical: it maintains a healthy 40% EBITDA margin and generated $458 million in cash last quarter, yet trades at modest multiples of 15x forward earnings and 9x forward EBITDA. With about one