A $29M Lawsuit, Falling Stock, and 3,192 BTC: What Is Semler Really Doing?

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Semler Scientific is looking to secure new funds through a $500 million bond offering—with plans to spend part of it on buying additional Bitcoin and enhancing business operations, as was noted in an SEC filing on Tuesday. The firm, which operates in healthcare technology with its QuantaFlo system for cardiovascular disease detection, has been increasingly interested in Bitcoin since 2024.

Semler Scientific

Per the latest Semler Scientific SEC disclosure, the firm intends to offer different securities, such as equity shares, convertible preferred shares, and corporate bonds. The company stated that the proceeds would be used mainly for a Bitcoin purchase with “general corporate purposes” further specified. Even so, no reliable estimates were given for the impending purchase price on Bitcoin.

Strategic Expansion Without Boundaries and Legal Issues

QuantaFlo has been under scrutiny for potential fraud revolving around a $29.75 million lawsuit settlement with the US Department of Justice—and just like that, Blockchain has Semler Scientific in their sights for Salt Technology’s QuantaFlo. With no apparent conclusion since work was halted for the Semler Scientific Files $500M Offering claim being contested in the anti-fraud laws set on marketing Quanta.

From their perspectives, the same day the department is quoted as saying they would pay the settlement using funds pulled from cryptocurrency lender Coinbase, with other cash being supplied by the company’s Bitcoin stash. But as they defend, these could also double as collateral.

A representative of the DOJ did not get back on Decrypt’s comment concerning the settlement agreement. It is reported that the negotiations started just days after Semler published its latest Bitcoin purchase in February 2025.

Semler Scientific purchased 871 BTC at the cost of $88.5 million dollars, bringing their total Bitcoin holdings to 3,192 BTC, with each Bitcoin on average costing $101,616. Decrypt.co data shows that Bitcoin prices have recently dropped below $99,000.

The Assets Bring Fuel to Financial Reformation

Bitcoin was incorporated into the balance sheet of Semler Scientific after May 2024. During this period, the company’s leadership team called this move a shift, transformative move.

Semler Scientific’s chairman, Eric Semler, elaborated: “We consider Bitcoin a dependable store of value and investment opportunity.”

According to Bitcoin Treasuries, the company ranked 12th among public firms holding Bitcoin. Their strategy actively considers Bitcoin not only as an investment but also as a financial mechanism, including using it as loan collateral.

From November 25 to December 4, 2024, Semler also purchased 303 BTC for about $30 million, spending an average of $ 96,779 for each coin. During that period, Semler claimed to have made a profit of 78.7% from his Bitcoin investments. This figure is said to have surged to 152% prior to the purchase in February 2025.

Market Response and Investor Sentiment

In spite of this aggressive cryptocurrency strategy, the company’s Nasdaq-listed shares (SMLR) have experienced a downturn. At present Semler Scientific’s stock has fallen by 37% year to date and is trading at $34.40.

Some market participants are still cautious about the company’s hybrid exposure to Bitcoin and healthcare.

DCF Research financial analyst Lisa Grant commented, “Potentionally, there are profound returns to be gained from Bitcoin, but the investments must be tempered because both crypto and healthcare are on a volatile path rife with regulatory hurdles.”

The offering is expected to enable Semler to offer securities to the market, depending on the situation, slowly. This approach, referred to as shelf registration, allows capital to be mobilized whenever required.

Outlook: High Stakes, High Risk.

Semler Scientific’s $500 million offering seems to once again walk the tightrope between risk and innovation. Their approach in leveraging Bitcoin both as an asset and a funding tool in healthcare operational tech is unique. The pending DOJ settlement brings more legal complications, although some resolution might restore some investor faith.

Semler Scientific’s offering increase liquidity and strengthen their financial portfolio, however, they appear to remain vulnerable to public sentiment surrounding Bitcoin and regulatory compliance. These coming months will be crucial to determining the outcome of this risk.

Bold moves have the potential to diversify assets, but with little to no sentiment around Bitcoin these coming months could be critical.

FAQs

Why is Semler Scientific raising $500 million?

As stated in the SEC filing, the company intends to utilize the capital for corporate activities, including the purchase of Bitcoin.

What legal issues is Semler Scientific facing?

Quoting Zoominfo, “Semler has a prospective settlement of $29.75 million with the Department of Justice for alleged antitrust violations and fraud claims related to abuse of marketing of the QuantaFlo product.”

How much Bitcoin does Semler Scientific currently hold?

Holding a total of 3,192 BTC, Semler’s current holdings consist of over 3,192 BTC as of February in 2025, with an average purchasing cost of $101,616 per coin.

What is a shelf registration statement?

It provides greater flexibility for companies because they can register securities and issue them at separate times.

How has Semle’s stock price performed in 2025?

Semler’s stock (SMLR) continues to decline, having decreased 37% year to date and currently priced at $34.40.

Glossary

Shelf Registration Statement: Allows the registration of stock for future issuance at an arbitrary time when a company wishes to sell it.

BTC (Bitcoin): A virtual currency functioning both as a payment method and an investment, frequently considered a safeguard against currency devaluation.

Collateral: Something of value pledged to secure a loan. In this instance, Semler intends to pledge Bitcoin to secure a loan with Coinbase.

DOJ (Department of Justice): Governmental body in charge of the prosecution of criminal offenses, including offenses of fraud.

Nasdaq: One of the principal U.S. stock exchanges on which Semler Scientific shares are traded.