Key Points:
- Semler Scientific increased its convertible bond issuance to $85 million, with notes maturing in 2030 at a 4.25% interest rate.
- The company recently added 237 Bitcoin, bringing its total to 2,321 BTC valued at $241 million, acquired at an average price of $82,689 per Bitcoin.
Semler Scientific expects to increase the size of the offering of convertible bonds to $85 million from $75 million.
Read more: Semler Scientific to Raise $75 Million to Buy More Bitcoin
Semler Scientific Upsizes Offering of Convertible Bonds to $85 Million
The notes mature in 2030, have an interest rate of 4.25%, and are being offered to qualified institutional buyers. Initial purchasers may purchase up to an additional $15 million of the notes during the 13-day period commencing from the date of the first issue. The offering is expected to settle on January 28, 2025, subject to customary closing conditions.
The bonds have an initial conversion price of $76.44 a share, which represents a 25% premium to the closing stock price on Jan 23. The proceeds will be partly used to fund capped option transactions, costing $6.6 mln, while the remainder will be used for corporate purposes, including Bitcoin investments.
Semler Scientific has aggressively ramped up its Bitcoin position in recent months. On January 13, the company bought 237 Bitcoins, which puts the number of Bitcoins as of January 24, 2025, at 2,321 Bitcoins. The total holdings, valued at about $241 million with Bitcoin trading near $105,000, were acquired at an average purchase price of $82,689 per Bitcoin.
Proceeds to Fund Corporate Initiatives and Bitcoin Strategy
Semler’s Bitcoin strategy has yielded significant unrealized gains. In Q4 2024 alone, the firm reported a $28.9 million increase in the fair value of its Bitcoin assets.
Since making its first Bitcoin purchases in May 2024, with the buying of 581 Bitcoin, it has positioned itself among corporate adopters of the cryptocurrency as a treasury asset. The move also resonated with investors: after announcing its first purchase of Bitcoin, Semler’s stock surged 30%.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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