SANTA CLARA, Calif. - Semler Scientific, Inc. (NASDAQ: NASDAQ:SMLR), a company specializing in technologies for chronic disease management, has recently increased its bitcoin investment and expanded its capital market activities. Between November 18 and November 22, 2024, Semler acquired an additional 297 bitcoins at an average price of $97,995 per unit, bringing its total holdings to 1,570 bitcoins, which were purchased at an aggregate cost of $117.8 million.
Today, Semler announced the filing of a prospectus supplement to offer an additional $50.0 million of shares under its at-the-market (ATM) equity program, doubling the total amount to $100.0 million. As of November 22, the company has raised approximately $50.0 million in gross proceeds from the ATM offering.
Semler has reported a bitcoin yield of 58.4% from July 1 to November 22, 2024, marking a substantial increase from the 37.1% yield observed from October 1 to November 22, 2024. Eric Semler, chairman of Semler Scientific, expressed enthusiasm over these results and the company's strategy to accumulate bitcoin on its balance sheet, which he believes is beneficial for stakeholders.
The company uses bitcoin yield as a key performance indicator (KPI) to assess the effectiveness of its bitcoin acquisition strategy, which is funded partly by issuing additional shares of common stock. The KPI measures the change in the ratio of bitcoin holdings to assumed diluted shares outstanding, but it is not considered an operating performance measure or a financial liquidity measure. Semler's management acknowledges the limitations of this metric and does not consider it indicative of the trading price of the company's common stock.
Semler Scientific emphasizes that this press release is not an offer to sell or a solicitation of an offer to buy any securities. The ATM offering is conducted under the company's previously filed and effective S-3 Shelf registration with the SEC.
The company, known for its FDA-cleared QuantaFlo® test for cardiovascular disease diagnosis, has also adopted bitcoin as its primary treasury asset. This information is based on a press release statement from Semler Scientific, Inc.
In other recent news, Semler Scientific presented a blend of financial outcomes in its third-quarter 2024 results, marked by a drop in revenues but a robust income from operations. The revenues decreased by 17% year-over-year to $13.5 million, while the income from operations held strong at $5.1 million. The company's aggressive Bitcoin treasury strategy, which involves the acquisition of Bitcoin as a primary reserve asset, was a key topic during the earnings call.
Semler Scientific, despite the revenue decline, has benefited from the change in fair value of its Bitcoin holdings. The company, holding 1,058 Bitcoins as of November 5, 2024, is exploring additional financing options to further increase its Bitcoin holdings. Concurrently, Semler Scientific continues to innovate in its primary 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.
InvestingPro Insights
Semler Scientific's recent bitcoin investment and capital market activities have been accompanied by impressive financial performance, as revealed by InvestingPro data. The company's market capitalization stands at $462.5 million, reflecting investor confidence in its strategic decisions.
InvestingPro Tips highlight Semler's impressive gross profit margins, which are further supported by the data showing a gross profit margin of 88.05% for the last twelve months as of Q3 2024. This exceptional profitability aligns with the company's ability to invest in bitcoin and expand its ATM offering.
The company's stock has shown remarkable momentum, with InvestingPro data indicating a 132.13% price return over the past month and a 172.94% return over the last six months. This surge in stock price correlates with Semler's reported bitcoin yield and increased bitcoin holdings.
However, it's worth noting that analysts anticipate a sales decline in the current year, with revenue growth showing a -11.93% change in the last twelve months. This contrasts with the company's aggressive bitcoin strategy and capital raising activities.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Semler Scientific, providing deeper insights into the company's financial health and market position.
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