TLDR
- Semler Scientific reported a $41.8 million paper loss on its Bitcoin holdings in Q1 2025
- The company plans to raise up to $500 million through securities offerings, primarily to acquire more Bitcoin
- Semler reached a tentative $29.75 million settlement with the DOJ over marketing allegations
- The firm intends to borrow from Coinbase using its Bitcoin as collateral to pay the DOJ settlement
- As of March 31, Semler held 3,182 Bitcoin valued at approximately $263.5 million
Semler Scientific, a healthcare technology firm, has reported an unrealized loss of approximately $41.8 million on its Bitcoin holdings during the first quarter of 2025 but remains committed to its cryptocurrency strategy with plans for a major securities offering.
The company disclosed in an April 15 SEC filing that it held 3,182 Bitcoin valued at around $263.5 million as of March 31. During the three-month period, Bitcoin prices fell 12% from $93,500 at the beginning of January to $82,350 by the end of March.
Semler reported expected revenues of $8.8 to $8.9 million and operational losses of $1.3 to $1.5 million for the same period. The company maintained approximately $10 million in cash and cash equivalents at the quarter’s end.
DOJ Settlement and Coinbase Loan
In a separate development, Semler Scientific reached a tentative agreement to pay almost $30 million to settle claims related to a civil investigation by the Department of Justice. The allegations involve federal anti-fraud law violations related to the marketing of its QuantaFlo product.
To address this settlement, the company plans to borrow funds from cryptocurrency exchange Coinbase. Semler intends to use its existing Bitcoin holdings as collateral for this loan, allowing it to resolve the legal matter without depleting its cash reserves.
The healthcare firm’s cash on hand would also contribute to the settlement payment, alongside proceeds from its loan agreement with Coinbase.
Expansion of Bitcoin Strategy
Despite recent losses, Semler Scientific appears undeterred in its cryptocurrency approach. The company filed with the SEC on April 15 to offer and sell securities worth up to $500 million, partly to continue its Bitcoin acquisition strategy.
“We may offer and sell securities from time to time in one or more offerings, up to an aggregate value of $500,000,000,”
the company stated. Semler’s common stock is listed on the Nasdaq under the symbol SMLR.
The firm cautioned that “our stock price has been volatile and may continue to be volatile.” Shares in the medical company have fallen 36% since the beginning of 2025.
Bitcoin Treasury Background
Semler Scientific began implementing its Bitcoin treasury strategy in May 2024, transforming the company’s financial profile. Before this shift, the firm was described as a “zombie company” by its chairman Eric Semler—publicly listed on Nasdaq and profitable, but with stagnant stock performance despite sizable cash reserves.
In February 2025, Semler added $88 million to its Bitcoin treasury, purchasing 871 BTC at an average price of $101,616. At that time, the company claimed to have generated a 152% yield from its Bitcoin investments.
Semler Scientific CEO Doug Murphy-Chutorian previously stated, “We remain laser-focused on acquiring and holding Bitcoin while supporting innovation and growth in our healthcare business.”
The company views Bitcoin as a “reliable store of value and a compelling investment,” according to its S-3 filing. Semler believes Bitcoin has “unique characteristics as a scarce and finite asset,” which positions it as a “reasonable inflation hedge and safe haven amid global instability.”
Currently, Semler ranks as the twelfth largest corporate holder of Bitcoin, ahead of Hong Kong gaming firm Boyaa Interactive International Limited, according to Bitbo data.
The securities offering would allow Semler to issue various financial instruments, including common stock, preferred stock, debt securities, warrants, and units over time. Beyond Bitcoin acquisition, the company noted that proceeds might fund working capital, research expenses, and potential investments in technologies complementing its core healthcare business.
This strategy aligns Semler with other publicly traded companies like Strategy (formerly MicroStrategy) and Metaplanet, which have also adopted Bitcoin as a key component of their treasury reserves.
