On Tuesday, medical software program firm Semler Scientific, Inc. (Nasdaq: SMLR) introduced that it had spent roughly $40 million to buy 581 Bitcoins as a part of its “Bitcoin Monetary Technique.”
Following the information, some in contrast the corporate’s technique to that of MicroStrategy, which converts practically all of its funds into Bitcoin.
Caught mine 👀
In the present day, Sammler Scientific introduced #bitcoin Funding methods much like Microstrategy @saylor
– acquired Bitcoin USD 8% of enterprise worth
– 5x EV/EBITDA
– 8x P/E ratioA #smalldisk model of $MSTR and $SMLR Positioned in Russell 2000 $IWM ? pic.twitter.com/vajSZM4zUz
— Thomas (Tom) Lee (non-drummer) FSInsight.com (@fundstrat) May 28, 2024
“I can’t assist however discover what MicroStrategy has completed,” Eric Semler, chairman of Semler Scientific, informed Bitcoin Journal.
“It’s wonderful what they’ve completed. They’ve a terrific story, taking an organization that was primarily buying and selling at market worth — its money was all it was value — and turning that money right into a development asset by shopping for Bitcoin, ” he added.
“This can be a good transfer for Michael Seiler, who has clearly confirmed himself with this technique.”
Whereas Semler clearly admires Saylor’s daring transfer, he seems to be extra conservative in including Bitcoin to the corporate’s coffers, as he said that Semler Scientific doesn’t intend to stray from its core mission – producing high-quality medical software program – because it makes Bitcoin turn into its essential monetary asset.
“You must take your time and work out the correct method on your firm,” Semler stated.
“Now we have a medical system software program enterprise. Now we have to weigh the professionals and cons of that enterprise versus investing in Bitcoin,” he added.
Having stated that, Semler appears to be a real believer in Bitcoin.
“Philosophically, I believe Bitcoin is known as a nice various to gold,” he stated. “I consider in gold, however I consider Bitcoin is a selective gold.”
He went on to say that he drastically appreciates Bitcoin’s excellent shortage, technical sturdiness and “architectural resiliency.”
He additionally sees ominous indicators. Bitcoin is a expertise that millennials are embracing, however the market worth of Bitcoin remains to be solely about one-tenth of gold.
“I had turn into a believer, and aligned with that perception, I believed, possibly shopping for Bitcoin is definitely a great use of our extra money.”
Sammler Scientific has all the time been flush with money and, in accordance with Sammler, is a “very high-margin enterprise.”
After contemplating choices corresponding to inventory buybacks or investing the money in firm coffers to generate earnings, Semler and his board got here up with the concept of utilizing a sizeable portion of their money to purchase Bitcoin.
Nicely versed in capital markets and investing in small and medium-sized (SMID-cap) corporations (corresponding to Semler Scientific itself, which has a market capitalization of about $227 million), Semler knew SMID-cap corporations wanted to do one thing in the event that they needed to face out to traders.
“It takes quite a lot of effort for a SMID market capitalization firm to draw traders’ consideration,” Semler defined.
“When you are able to do one thing dynamic — like investing in digital gold with out quite a lot of different individuals doing it — that’s significant and essential,” he added.
“If I had been an investor, I’d look intently as a result of it’s completely different.”
Semler Scientific shares are presently buying and selling at simply over $32, roughly 50% increased than the place they had been buying and selling earlier than its Bitcoin Vault announcement.
