TLDR
- Butterfly Network stock jumped around 31% after Midjourney announced its new healthcare division, Midjourney Medical, and the Midjourney Scanner
- The full-body ultrasonic device uses 40 of Butterfly’s Ultrasound-on-Chip modules per prototype, under a co-development agreement worth up to $74 million over five years
- TD Cowen analyst Joshua Jennings said the deal validates Butterfly’s chip-licensing platform as a standalone revenue stream
- Midjourney plans 5,000 scanner spa locations and a global installed base of 50,000+ units by 2031, which could mean major chip demand for Butterfly
- William Blair flagged open questions around FDA approval, insurance reimbursement, and clinical utility of routine whole-body scanning
Butterfly Network (BFLY) stock hit $7.54 on Thursday, up around 31%, after Midjourney went public with its new healthcare division and a device built around Butterfly’s core technology.
Midjourney Medical unveiled the Midjourney Scanner — a full-body ultrasonic computational tomography device. Each current prototype uses 40 of Butterfly’s Ultrasound-on-Chip imaging modules. Future versions are expected to use more.
The announcement sent BFLY to a new 52-week high of $8.01 during the session, up from a prior close of $5.71.
The deal runs through Butterfly Embedded, formerly known as Octiv — Butterfly’s chip-licensing and co-development arm. Butterfly disclosed the agreement in an SEC filing back in November 2025, flagging up to $74 million in expected payments over five years.
Elon Musk replied to the announcement on X with a simple “cool,” which kept social media attention on the story throughout the session.
Short interest had been sitting at about 12.6% of the float heading into Thursday. As bearish positions unwound, that added extra fuel to the move.
What the Analysts Are Saying
TD Cowen’s Joshua Jennings was quick to highlight the strategic value. He argued the deal shows that Butterfly’s chip platform has real value beyond its handheld ultrasound business — opening the door to licensing revenue, future chip sales, and revenue sharing.
William Blair also weighed in, pointing to Midjourney’s rollout plan as a potentially large long-term opportunity for Butterfly.
Midjourney is targeting 5,000 dedicated “Midjourney Spas,” each running around 10 scanners. The first location is expected to open in San Francisco in late 2027.
The company is also working on next-generation scanners planned for 2028, with a goal of more than 50,000 units globally by 2031. At roughly 40 chips per scanner, William Blair said that math represents a real opportunity for Butterfly’s chip business.
Key Questions Remain
Not everyone is fully sold. William Blair analyst Andrew Brackmann flagged several open questions that could affect how this plays out.
He questioned how Midjourney plans to get FDA approval fast enough to support that scale of demand. Insurance reimbursement is another hurdle — Brackmann sees it as critical to making the market opportunity real.
He also noted there’s currently no early clinical evidence from the scanner demonstrating clear utility for routine whole-body use.
Butterfly’s CEO Joe DeVivo, CFO John Doherty, and SVP of Innovation David Horsley were scheduled to speak at a TD Cowen Medical Devices Emerging Growth Call at noon ET on Thursday.
The broader market was also supportive, with the S&P 500 up 0.9% and the Nasdaq up 1.2% during the session.
BFLY was trading at $7.49, up 31.1%, at the time of publication.
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