Semler Scientific sees after-hours stock slump as Q1 revenue plunges

Semler Scientific, a medical device company, experienced a significant drop in its share price following the release of its first-quarter earnings report. The report revealed a 44% decrease in total revenue to $8.8 million, compared to the same period in 2024, and a substantial net loss of $64.7 million, a stark contrast to the $6.1 million net income reported in Q1 2024. Despite a temporary surge in share price before the announcement, SMLR shares fell 1.91% to $36 after the earnings release, extending the year-to-date decline to over 32%.

A key factor contributing to Semler’s financial performance is its aggressive Bitcoin acquisition strategy. During Q1, the company purchased 894 Bitcoin (BTC), bringing its total holdings to 3,192 BTC, valued at $263.5 million. Further purchases between the end of Q1 and May 12th added another 616 BTC, increasing its holdings to 3,808 BTC with a fair value of $387.9 million. This represents a significant unrealized gain of $41.6 million during Q1, and $52 million year-to-date. Semler’s debt-to-Bitcoin net asset value currently stands at 25.3%. The company’s plans to sell $500 million in shares, partly to fund further Bitcoin acquisitions, highlight its commitment to this strategy.

Semler’s actions are reflective of a broader trend: corporations are becoming major Bitcoin buyers. River Financial reports that businesses are outpacing both ETFs and retail investors in Bitcoin acquisition this year. A total of 104 public companies hold nearly 787,000 BTC, with MicroStrategy leading the pack at over 568,000 BTC. Analysts, citing MicroStrategy’s stated intention to hold its Bitcoin, suggest that Bitcoin is now deflationary. Further illustrating this trend, Tether recently purchased $459 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment firm it backs. This acquisition underscores the growing institutional interest in Bitcoin, with predictions of a potential market capitalization exceeding $200 trillion. The sustained institutional investment in Bitcoin, coupled with the growing belief in its deflationary nature, continues to shape the cryptocurrency market.