TLDR
- Semler Scientific reported a $41.8 million unrealized loss on its Bitcoin holdings in Q1 2025
- The healthcare tech firm holds 3,182 Bitcoin valued at $263.5 million as of March 31
- Semler has filed to raise up to $500 million in securities, partly to fund more Bitcoin purchases
- The company reached a tentative $29.75 million settlement with the DOJ over marketing allegations
- Semler plans to borrow from Coinbase using its Bitcoin as collateral to pay the DOJ settlement
Semler Scientific, a healthcare technology company, has reported paper losses of approximately $41.8 million on its Bitcoin holdings during the first quarter of 2025. The losses come as Bitcoin experienced a 12% price drop from $93,500 at the beginning of January to $82,350 by the end of March.
According to an SEC filing on April 15, Semler holds 3,182 Bitcoin valued at around $263.5 million as of March 31. This makes the company the twelfth largest corporate holder of Bitcoin, ahead of Hong Kong gaming firm Boyaa Interactive International Limited.
The medical device firm reported expected revenues of $8.8 to $8.9 million for the quarter. It also reported operational losses between $1.3 and $1.5 million for the same period.
Settlement with Department of Justice
In the same SEC filing, Semler disclosed it had reached an agreement in principle to pay almost $30 million to settle claims related to a civil investigation by the Department of Justice. The allegations relate to federal anti-fraud law violations connected to the company’s QuantaFlo product marketing.
The company plans to borrow from cryptocurrency exchange Coinbase to pay the $29.75 million settlement. Semler intends to use its Bitcoin holdings as collateral for that loan, along with its cash on hand, which was approximately $10 million as of March 31.
The settlement talks began just four days after Semler added $88 million worth of Bitcoin to its treasury on February 7. At that time, the company claimed to have generated a 152% yield from its Bitcoin investments.
Ambitious Fundraising Plans
In a separate filing on April 15, Semler outlined plans to offer and sell securities worth up to $500 million. The company stated it would use the net proceeds “primarily for general corporate purposes, including the acquisition of Bitcoin.”
The shelf registration statement would allow Semler to issue various securities over time. These could include common stock, preferred stock, debt securities, warrants, and units, according to the filing.
Semler’s stock is listed on the Nasdaq under the symbol SMLR. The company cautioned investors that its “stock price has been volatile and may continue to be volatile.” Shares in the medical firm have fallen 36% since the beginning of 2025.
Additional uses for the funds may include working capital, research expenses, and potential investments in technologies that complement its core healthcare business. However, the firm has not yet responded to comments on the specific size of its next Bitcoin purchase.
Bitcoin Strategy Despite Losses
Despite the current paper losses, Semler remains committed to its Bitcoin strategy. CEO Doug Murphy-Chutorian had previously stated, “We remain laser-focused on acquiring and holding Bitcoin while supporting innovation and growth in our healthcare business.”
Semler began implementing its Bitcoin treasury strategy in May 2024. Before this shift, the firm was described as a “zombie company” by its chairman, Eric Semler. While publicly listed on Nasdaq and profitable, it had stagnant stock performance despite having sizable cash reserves.
In its S-3 filing, Semler described Bitcoin as having “unique characteristics as a scarce and finite asset.” The company believes this positions Bitcoin as a “reasonable inflation hedge and safe haven amid global instability.”
The healthcare firm made earlier Bitcoin purchases as well. In December 2024, Semler bought 303 Bitcoin at an average price of $96,779, bringing its holdings at that time to 1,873 Bitcoin. The company paid an average of $101,616 per Bitcoin in its latest buying spree between January and early February 2025.
The full Bitcoin correction from its all-time high to the low below $75,000 on April 7 stands at 32%. Despite this correction and the paper losses, Semler continues to view Bitcoin as a “reliable store of value and a compelling investment.”
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