TLDR
- Semler Scientific purchased 929 bitcoins for $63 million as part of its new treasury strategy
- The company’s Q2 2024 revenue was $14.5 million, down from $18.6 million in Q2 2023
- Net income dropped to $11,000 in Q2 2024, compared to $5.9 million in Q2 2023
- The fair value of Semler’s bitcoin holdings decreased by $5.1 million in Q2
- Semler plans to continue buying bitcoin using operational cash flow and potential security sales
Semler Scientific, a healthcare technology provider, has released its financial results for the second quarter of 2024, highlighting both its core business performance and its new bitcoin treasury strategy.
The company reported Q2 2024 revenue of $14.5 million, a 22% decrease from $18.6 million in the same quarter last year. Despite this decline, Semler’s revenue surpassed analyst expectations of $14.20 million.
Semler’s income from operations for Q2 2024 was $5.4 million, down from $7.2 million in Q2 2023. The company’s net income saw a significant drop, falling to just $11,000 from $5.9 million in the previous year’s quarter. This steep decline was largely due to a $5.1 million decrease in the fair value of the company’s bitcoin holdings.
In May 2024, Semler Scientific announced its adoption of a bitcoin treasury strategy. Since then, the company has made several large bitcoin purchases. As of August 5, 2024, Semler held 929 bitcoins, acquired for a total of $63 million, including fees and expenses.
The company’s most recent bitcoin acquisition, announced with its Q2 results, was 101 bitcoins for $6 million. This follows earlier purchases of 581 bitcoins for $40 million in May, 247 bitcoins for $17 million in early June, and 49 bitcoins for $3 million in late June.
Doug Murphy-Chutorian, CEO of Semler Scientific, commented on the company’s dual focus: “We are pleased to report strong income from operations of $5.4 million in the second quarter. We remain laser focused on acquiring and holding bitcoin, while supporting and expanding our healthcare business.”
Semler’s primary product is QuantaFlo, an FDA-cleared test that measures arterial blood flow in the extremities to help diagnose cardiovascular diseases. The company is seeking new regulatory clearances to expand the use of this technology.
As of June 30, 2024, Semler’s cash and cash equivalents stood at $7.3 million, down from $57.2 million at the end of 2023, reflecting the company’s substantial bitcoin purchases. The fair value of Semler’s bitcoin holdings was $54.9 million as of June 30, showing a $5.1 million decrease from the purchase price.
Eric Semler, Chairman of Semler Scientific, expressed optimism about the company’s bitcoin strategy:
“We continue to firmly believe that bitcoin is a compelling investment and plan on acquiring additional bitcoins with our cash from operations, as well as with cash generated from the sale of securities under our $150.0 million shelf registration statement, once effective.”
Looking ahead, Semler Scientific intends to continue its bitcoin acquisition strategy while maintaining its core healthcare technology business. The company plans to use cash from operations and potentially proceeds from security sales to fund future bitcoin purchases.
