Semler Scientific (SMLR, Financial) has made significant advancements in its bitcoin investment strategy and equity offering programs. Between mid-February and late April, the company purchased an additional 111 bitcoins worth $10 million, bringing its total bitcoin assets to 3,303 coins. The average acquisition cost for these bitcoins was approximately $87,929 per coin, factoring in all related fees and expenses.
As of April 24, the company’s total bitcoin holdings were valued at around $309.1 million, according to Coinbase exchange rates. This underscores the strategic approach Semler Scientific is taking in leveraging bitcoin to potentially enhance shareholder value.
In terms of equity offerings, Semler Scientific has entered into a new Controlled Equity OfferingSM Sales Agreement. The agreement, facilitated through Barclays Capital Inc., Cantor Fitzgerald & Co., Canaccord Genuity, Needham & Company, Craig-Hallum Capital Group, and Lake Street Capital Markets, allows the company to issue and sell up to $500 million worth of common stock on an as-needed basis.
Previously, the company had an arrangement with Cantor Fitzgerald & Co., permitting up to $150 million in equity offerings. The augmented offering framework is part of Semler Scientific's broader strategy to fund its bitcoin purchases and other corporate initiatives.
The company reports a bitcoin yield of 23.5% year-to-date through April 24, 2025, considering this figure a key performance indicator. This metric is intended to provide insights into the company's performance and how effectively it is managing its bitcoin investment strategy alongside its common stock issuance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Semler Scientific Inc (SMLR, Financial) is $71.00 with a high estimate of $71.00 and a low estimate of $71.00. The average target implies an upside of 106.16% from the current price of $34.44. More detailed estimate data can be found on the Semler Scientific Inc (SMLR) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Semler Scientific Inc's (SMLR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SMLR Key Business Developments
Release Date: February 18, 2025
- Total Revenue (Q4 2024): $12.4 million, down 18% compared to Q4 2023.
- Operating Expenses (Q4 2024): $8.9 million, a decrease of 29% year-over-year.
- Income from Operations (Q4 2024): $3.5 million, an increase of 40% compared to $2.5 million in the prior year.
- Net Income (Q4 2024): $29.2 million or $3.64 per basic share and $3.41 per fully diluted share.
- Cash, Cash Equivalents, and Restricted Cash (Dec 31, 2024): $8.9 million.
- Bitcoin Holdings: 3,192 bitcoins valued at over $300 million, with an average cost basis of $87,854 per Bitcoin.
- Convertible Senior Notes Offering: $100 million of notes issued with a 4.25% interest rate, maturing in August 2030.
- Bitcoin Purchases (Q4 2024): 1,280 bitcoins for $121.3 million.
- Additional Bitcoin Purchases (Post Q4 2024): 894 bitcoins for $90.7 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Semler Scientific Inc (SMLR, Financial) achieved record cash generation of over $24 million in 2024 from healthcare operations.
- The company adopted Bitcoin as its primary treasury reserve asset, becoming the second US public company to do so, and has seen a 152% positive yield since adoption.
- Semler Scientific Inc (SMLR) has accumulated 3,192 bitcoins, valued at over $300 million, making it the tenth largest corporate holder of Bitcoin.
- The company's market capitalization has grown by more than 200% since adopting Bitcoin as a treasury strategy.
- Semler Scientific Inc (SMLR) is pursuing a new 510(k) clearance for an extension of its QuantaFlo technology, aiming to expand its product offerings in the cardiovascular space.
Negative Points
- Total revenues in Q4 2024 were $12.4 million, down about 18% compared to the fourth quarter of 2023.
- The company expects further pressure on revenues in 2025 due to the phasing of the 2024 CMS rate announcement.
- Two largest customers, including their affiliates, comprised 70% of quarterly revenues, indicating high customer concentration risk.
- The adoption of a new accounting standard for Bitcoin assets may introduce volatility into reported net income.
- Semler Scientific Inc (SMLR) faces challenges in maintaining QuantaFlo revenue due to government decisions affecting payment for risk adjustment for PAD.
