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medical device manufacturer Scientific Semler (Nasdaq:SMLR) bitcoin-purchases”>Announced acquired an additional 247 bitcoin for $17 million in cash, bringing its total holdings to 828 btc. The company also plans to raise $150 million to expand its bitcoin reserves.
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ONLY IN: BlackRock announcement twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin The IBIT ETF today had inflows of $347.1 million. pic.twitter.com/SIKByVcctA
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1798852904541143204?ref_src=twsrc%5Etfw”>June 6, 2024
Semler made a splash last month when he adopted bitcoin as his bitcoin-treasury-strategy”>treasury primary reserve asset, imitating MicroStrategy's influential corporate bitcoin accumulation strategy. After his initial purchase of 581 bitcoins, Semler has continually acquired more coins.
CEO Doug Murphy-Chutorian said: “Semler remains focused on our two strategies of expanding our healthcare business and acquiring and holding bitcoins. We will continue our strategy of purchasing Bitcoins with cash.”
The company filed an S-3 form with the SEC outlining its plan to raise $150 million in debt, a portion of which will go toward purchasing more bitcoin. Semler noted in the presentation that he sees bitcoin as a “reasonable hedge against inflation and a safe haven amid global instability.”
Semler is following the lead of MicroStrategy, which has accumulated more than 200,000 bitcoin and catalyzed the recent trend of public companies adding bitcoin to their balance sheets. After MicroStrategy began its bitcoin buying spree in 2020, its stock price rose sharply as investors responded positively.
Other companies, such as Japanese public company Metaplanet, have also started following MicroStrategy's bitcoin treasury allocation playbook this year. They recognize that owning scarce assets like bitcoin can potentially increase the value of their company.
This demonstrates bitcoin game theory in action, as corporations increasingly adopt bitcoin to maximize shareholder value. Semler's continued acquisition of bitcoin reflects his belief that adding it to his balance sheet can significantly improve his business.
As this recent trend gains widespread validation, more public companies are likely to flock to bitcoin and follow Microstrategy's playbook.
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