Semler Scientific raises $75M to expand Bitcoin holdings, boost corporate growth, and strengthen its cryptocurrency investment strategy for the future.
Semler Scientific, a healthcare tech and software company, has announced plans to raise $75 million to invest in Bitcoin. The company reported this information after observing $29 million in paper profit from its current Bitcoin holdings. On January 23, the company unveiled this information through a press release.
The company intends to secure capital by selling convertible senior notes that mature in 2030. Qualified institutional buyers will purchase the notes as allowed by Rule 144A of the Securities Act of 1933. The initial buyers will have the opportunity to acquire a supplementary $15 million in notes in 13 days after the initial issuance by Semler.
The notes remain unsecured while they accumulate interest payments every six months. Semler has the option to provide payment through cash, common shares, or a combination of the two methods during the conversion process. The pricing of the offering will establish primary terms including both the interest rate and conversion rate.
The Bitcoin investment strategy of Semler started operations in May 2024. Earlier this month, the company spent $23.3 million to buy 237 BTC at an average price of $98,267 per Bitcoin. Through its latest fundraising approach, the company reaffirms its ongoing interest in Bitcoin investment ventures.
Semler Uses New Funding to Strengthen Bitcoin Holdings
The money obtained from the offering will finance capped call transactions while supporting overall corporate operations and acquiring extra Bitcoin holdings. During capped call transactions, the company works to minimize stock dilution occurring from note conversions.
Semler projects that the financial institutions participating in these transactions will either buy its common stock or enter into derivative operations. This business operation has potential effects on Semler’s share market value. Note conversions work with market conditions to determine stock performance.
Market conditions govern the offering, which means completion is not assured. Under current U.S. regulations, the notes and their corresponding stock shares retain unregistered status while their distribution proceeds through legally allowed exemptions.
Semler demonstrates its strategic Bitcoin investment as part of its vision for business growth. The company plans to improve financial stability through additional fundraising and utilize the rapidly expanding role of cryptocurrency in financial markets. Semler now ranks with businesses that have made active efforts to integrate Bitcoin into their operational strategies. This move shows their belief in the future potential of digital currency.
Source: https://www.livebitcoinnews.com/semler-scientific-to-raise-75-million-to-increase-bitcoin-holdings/