In a recent interview with Bitcoin MagazineSemler Scientific Chairman Eric Semler shared how the company will change its trajectory through Bitcoin’s financial strategy.
Semler Scientific (SMLR) is not a typical Bitcoin finance company. It has a strong cash position, but the overwhelming stock performance over the years has led the company to rely on Bitcoin as a strategic catalyst rather than as a gamble. There have since been fundamental changes in valuation, shareholder involvement and long-term positioning.
“We were the second public US company to adopt Bitcoin as our main financial reserve strategy. Michael Saylor is clearly a typical pioneer, but we’re in that group.”
Activism meets Bitcoin conviction
Semler joined Semler Scientific’s board of directors just two years ago. “I became an activist on the Semler Committee. I wasn’t actually involved in the company until two years ago,” he said. What he found was a cash-generating business, but it didn’t pay off for it. As he said, it’s a “zombie company.”
“We had all this cash. It was creepy similar to MicroStrategy in August 2020. We had a very similar profile. There was a lot of cash. A lot of our market capitalization was cash. We weren’t really growing.”
Rather than pursuing an acquisition, Semler helped guide the company to Bitcoin. “We needed to figure out how to start growing and settled on Bitcoin. This was a big decision.”
Transformational movement
Since unveiling its Bitcoin financial strategy, Semler Scientific has undergone major changes not only in its assessment but also in momentum and awareness.
“Our inventory has quadrupled at some point. Now it’s basically doubled. We haven’t done anything in years. For businesses that are considered stagnant for a long time despite their consistent profitability, Bitcoin moves catalyzed a reassessment of the market, bringing new visibility into previously overlooked businesses.
The internal response is equally strong. “Everyone is on board,” Semler said. “It’s great to have this kind of power in our company.”
What began as an activist-led effort to escape the “zombie” stock profile has become a strategic unlock. For companies that are fundamentally powerful yet lacking a growth story, Bitcoin offers more than just an asset valuation. This provides a way to re-rotate the market with signaling power, capital conservation, and new conditions.
From under the radar to the spotlight
For companies that have been overlooked in the market for years, Semler Scientific’s pivot to Bitcoin financial strategy not only shifts the financial foundations, it has dramatically raised the company’s profile.
“I had a strong belief in Bitcoin, but I had no idea what I was into… the whole social media aspect was really shaking for me,” Semler said.
A former journalist and veteran investor, Semler is used to working behind the scenes. I ask questions without answering them. “I’m more introverted. I’m not the kind of person who exposes myself through social media,” he admitted.
However, Bitcoin has a way of changing its relationship with a company’s vision. Semler Scientific is attracting new vocal shareholder bases, and has become the reference point for other executives who measure Bitcoin Passes by Semler himself. It’s not always comfortable, but it’s effective.
“At the end of the day, what really matters is that we own a lot of Bitcoin and Bitcoin is the most important thing. The most important thing is to create shareholder value.”
In the case of Semler Scientific, Bitcoin not only changed its balance sheet, but also drew the company into the spotlight and conversation.
Why the institutions are paying attention to
Retail investors can access Bitcoin via Spot ETF or self-reliance, but the funds of many large institutions remain limited by mandates that prohibit direct exposure. That dynamic creates a unique opening for a publicly-owned operating company with Bitcoin on its balance sheet.
“Most investment funds cannot purchase ETFs,” explained Semler. “For the vast majority of the money in this country, we are the only way to be exposed to Bitcoin in the stock market.”
This limitation – Little, known outside the facility world, has transformed companies like Semler Scientific into proxy vehicles for exposure to Bitcoin. And for fund managers who believe in long-term papers but can’t touch the underlying assets, companies like SMLR offer a rare bridge.
As more institutions diversify alternatives to the capital environment of fiat demographics in pursuit of asymmetric benefits, Semler Scientific (SMLR) is increasingly part of its capital conversation.
Navigate volatility
When asked what advice he would give to other companies considering Bitcoin, Semler didn’t sugarcoat it. “Prepare for volatility. If you’re happy with it, know that it will be part of this experience.”
He recalled the company’s first major purchase. “We took almost all of our cash in May and bought Bitcoin. As soon as the purchase was finished, the news came out that Mt Gox was doing the distribution. And I think Bitcoin fell sharply like 25% in a short period of time.
But instead of pulling back, they moved forward. I nurtured more capital and bought more Bitcoin through both ATM equity and convertible notes. “We did a $100 million convertible loan.”
Looking ahead
Semler believes that the long-term benefits go beyond “hadling.” As infrastructure matures and institutions like JPMorgan go deeper into the space, he believes there is a possibility that he will use Bitcoin for yields and fundraising.
“We’ve found out we’re a kind of Bitcoin financial company.”
For now, the focus is clear. It accumulates Bitcoin, manages volatility, and unleashes value where others see risk. “We’re accumulating Bitcoin early, and we’ll continue doing that.”
Disclaimer: This content was written on behalf of Bitcoin for businesses. This article is for informational purposes only and should not be construed as an invitation or solicitation to acquire, purchase, or subscribe to any securities.
This post How Semler Scientific (SMLR) Escaped the Zombie Zone with Bitcoin Financial Strategy first appeared in Bitcoin Magazine and is written by Nick Ward.
