Semler Scientific increases Bitcoin holdings after acquiring 47 BTC
Semler Scientific, a health care United States-based company, on November 4th released its third-quarter financial results, which ended on September 30, 2024.
The company also disclosed that it has acquired additional 47 Bitcoin (BTC) since August 26, 2024, for a total of $3.0 million from operating cash flow. As of November 4, 2024, Semler Scientific has acquired 1,058 BTC, totaling $71.0 million.
According to Bitcoin Treasures data, the recent purchases place Semler Scientific as the 17th-largest Bitcoin holder among publicly traded companies, ahead of Metaplanet, a Japanese investment firm, and below Brooker Group’s BROOK (BKK). However, as of the time of writing, the data is yet to be updated by Bitcoin treasures to reflect Semler's new total BTC holding.
Semler Scientific third quarter 2024 financial results
The two biggest clients of Semler Scientific (including their affiliates) accounted for 44% and 29% of the company's third-quarter 2024 revenues, while its three biggest clients accounted for 36%, 28%, and 11% of its third-quarter 2023 revenues, respectively.
The company said it generated $13.5 million in revenue, $1.2 million in cost of revenues, $8.4 million in total operating expenses, including cost of revenues, $5.1 million in income from operations, $6.4 million in pre-tax income (including an unrealized gain of $1.1 million from the change in the fair value of Semler Scientific's Bitcoin holdings), $0.8 million in income tax expense, or an effective tax rate of 12%, and $5.6 million in net income during the third quarter that ended on September 30, 2024.
Doug Murphy-Chutorian, MD, CEO of Semler Scientific, stated, "We are happy to report strong performance from our healthcare business with income from operations of $5.1 million in the third quarter."
Semler Scientific buys additional 47 Bitcoin
Medical device company Semler Scientific held 1,018 BTC with a fair value of $64.5 million as of September 30, 2024; this represents a cumulative decline in fair value of $3.9 million. For a total of $8.4 million, Semler Scientific bought 141 BTC during the third quarter, which concluded on September 30, 2024.
Additional 40 BTC were later acquired by Semler Scientific through November 4, 2024, at a total cost of $2.6 million. With 1,058 BTC in total holdings as of November 4, 2024, Semler Scientific has $71.0 million in operating cash flow. Every purchase amount includes costs and fees.
Semler updates at-the-market (ATM) offering
According to the information previously provided in Semler Scientific's registration statement on Form S-3, which went into effect on August 13, 2024, the company and Cantor Fitzgerald and Co. entered into a sales agreement (Controlled Equity Offering Sales Agreement), which permits the company to occasionally issue and sell up to $50.0 million of its common stock in an at-the-market (ATM) offering.
Semler Scientific sold 86,734 shares in total under the terms of the sales agreement as of September 30, 2024, for a total of about $2.5 million in net proceeds (less sales commissions). Semler Scientific chairman Eric Semler said, “By accumulating Bitcoin, we are taking advantage of the chance to maximize stakeholder value." We plan to continue to purchase Bitcoin with cash from operations and with cash proceeds from our sales under the company ATM program.
Google Finance reports that Semler's stock price closed 2.31% lower on the day at $29.97, but it surged 3.44% in after-hours trading on Nov. 4 to $31.
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