Semler Scientific, Inc. has recently announced in a press release that it plans to raise $75 million through private offerings of convertible notes. The noes as per the press release will be due by 2030. This main aim of this move is to bring in institutional buyers that qualify the Rule 144A. Additionally, $15 million in notes may also be offered to initial buyers.
Convertible Notes and Current Holdings
The company is borrowing $75 million by issuing the convertible notes that will earn interest every six months. When these notes are converted, the company can pay back the investors with cash, company stock, or through a mix of cash and company stock both.
Semler Scientific currently holds 2,321 bitcoins, which were acquired for a purchase price of $191.9 million at an average purchase price of $82,689 per bitcoin, inclusive of fees and expenses.
The borrowed money will mainly be used to protect the company’s existing shareholders from owning a smaller piece of the company when the notes are being converted, and to fund other business initiatives, which mainly includes buying more Bitcoin.
Semler Has Come a Long Way
Semler has come a long way from its earlier funding methods. Previously, the company was dependent on equity offerings and revenue growth from its flagship product known as QuantaFlo®, a diagnostic tool that helps in detection of cardiovascular conditions like PAD (Peripheral artery disease). The shift to convertible notes is like mirroring the approach of Bitcoin pioneers such as MicroStrategy which is led by Michael Saylor.
Saylor has been very vocal and supportive towards companies that leverage Bitcoin for treasury management. Saylor recently also commented on his X account saying “$SMLR is a company on the Bitcoin Standard” which slyly gave a boost to the company to do even better with its Bitcoin strategy. This approach has enhanced Semler’s appeal to the investors that seek exposure to healthcare and blockchain sectors.
Future Outlook
With QuantaFlo®, and Semler’s growing use of Bitcoin, the company is also working towards protecting its shareholders’ investments by minimizing the impact of new shares being issued. As the company is very-well trying to innovate and stay ahead in digital asset trend, it is set for long-term success.