Medical tech firm sees Bitcoin holdings plunge in Q1 but plans new securities offering to expand crypto strategy despite DOJ investigation
Semler Scientific, a Nasdaq-listed healthcare technology company, is doubling down on its Bitcoin strategy even after recording a $42 million paper loss in the first quarter of 2025. The firm, known for its medical diagnostics products, disclosed that despite the downturn in BTC prices, it plans to raise up to $500 million through a securities sale to continue acquiring the cryptocurrency.
The move comes amid growing volatility in Semler's financials and regulatory challenges. In an April 15 filing with the U.S. Securities and Exchange Commission (SEC), the company revealed its intention to sell up to $500 million worth of stock and other securities, stating that the proceeds would go toward general corporate purposes — including further Bitcoin acquisitions.
“We remain laser-focused on acquiring and holding Bitcoin while supporting innovation and growth in our healthcare business,” CEO Doug Murphy-Chutorian previously stated in November 2024.
Semler currently ranks as the 12th largest public holder of Bitcoin globally, ahead of companies like Hong Kong’s Boyaa Interactive, according to data from Bitbo. However, the aggressive crypto strategy has come at a cost.
The firm’s stock, traded under the ticker SMLR, has dropped over 36% year-to-date, largely reflecting investor concerns over its Bitcoin-heavy approach and a recent regulatory overhang.
DOJ Investigation Settlement in Sight
Adding to its challenges, Semler also announced that it has reached an agreement in principle to resolve a civil investigation by the U.S. Department of Justice. The settlement figure is expected to approach $30 million, though full details have yet to be disclosed.
Despite these setbacks, Semler’s leadership appears undeterred. The company emphasized in its SEC filing that the offering may occur “from time to time in one or more offerings,” signaling flexibility in both timing and structure.
The filing also warned that SMLR stock “has been volatile and may continue to be volatile,” particularly as macro conditions, healthcare market shifts, and Bitcoin price action all impact investor sentiment.
Bitcoin Strategy Continues
Semler’s commitment to Bitcoin as a treasury asset follows a trend led by firms like Strategy, which continue to use equity and debt offerings to accumulate more BTC. However, with Q1 crypto markets experiencing a correction, Semler's paper losses have highlighted the risks associated with such strategies — especially for companies outside the traditional finance or tech sectors.
Whether Semler’s $500 million bet on Bitcoin will yield long-term gains or exacerbate its volatility remains uncertain. But one thing is clear — the firm is positioning itself as one of the most aggressive Bitcoin adopters in the healthcare industry, even as market sentiment remains divided.
HODL Team
