In a significant crypto acquisition, medical technology company Semler Scientific bought another $25 million in Bitcoin, increasing its treasury holdings to nearly 5,000 BTC. However, the company’s stock price has fallen 22% year-to-date despite positive developments in its crypto strategy.

According to a filing with the US Securities and Exchange Commission (SEC), Semler purchased 210 Bitcoin in the first week of July at an average price of $118,974 per coin. The move pushed its total Bitcoin holdings to 4,846 coins, valued at approximately $577.9 million.

Secured by a $175 million capital raise through an at-the-market offering in April, the shift to a Bitcoin treasury strategy is part of a broader plan to hold 105,000 BTC by 2027. This target, representing 0.05% of all Bitcoin expected to be mined, relies on continued substantial investments.

“The lackluster price performance of Semler Scientific shows that simply pivoting to a Bitcoin strategy isn’t a panacea for all business troubles,” crypto analyst Nic Puckrin told Cointelegraph.

The company’s share price has failed to respond positively to its aggressive crypto-focused approach. Trading down 18.7% year-to-date despite a marginal intraday gain, investor sentiment appears guarded. The buy-back program partially funded through share issuances also dilutes existing shareholders.

Puckrin added, “This dilutes shareholder value, so it makes sense they aren’t that thrilled, especially considering its Q2 earnings report was underwhelming. Not all Bitcoin treasury companies will be able to replicate Strategy’s success.”

Strategy, the first publicly traded company to bet on a Bitcoin corporate reserve, has significantly expanded its own holdings, exceeding 601,550 BTC since adopting its digital asset treasury in October 2022.

Google Finance data shows the stock losing more than one-fifth of its value in 2024 so far.

Semler Scientific Faces Legal Inquiries Citing DOJ Settlement

Semler Scientific is facing potential shareholder litigation concerning its settlement discussions with the US Department of Justice (DOJ). At least two law firms have issued notices encouraging investors to consider claims.

The matter appears linked to Semler’s February announcement about its settlement talks with the DOJ regarding alleged anti-fraud violations concerning its QuantaFlo medical device. Consequently, the company’s stock dropped 9.4% following the disclosure.

In April, the company stated it had reached an agreement in principle to settle with the DOJ for $29.8 million.