Semler Scientific, a healthcare tech company, is planning to raise $500 million by selling new shares, according to recent filings with the U.S. Securities and Exchange Commission (SEC). This comes just after the company agreed to pay nearly $30 million to settle a case with the U.S. Department of Justice (DOJ). Interestingly, part of the money raised will go toward buying more Bitcoin — a move that shows the company is still bullish on crypto.
$30 Million Settlement Over Marketing Practices
The settlement comes after a long investigation that began back in 2017. The DOJ was looking into how Semler marketed its main product, QuantaFlo, a test used to detect heart and blood flow problems. The government said the company may have broken federal anti-fraud laws with how it promoted the device.
Semler agreed to pay $29.75 million to resolve the issue. The settlement isn’t final yet, but it’s close. Instead of selling off its assets to cover the cost, the company found a creative solution.
Half-Billion Dollar Securities Filing Points To Bigger Crypto Plans
Taking a Loan from Coinbase — Without Selling Bitcoin
Semler holds 3,190 Bitcoins — worth around $267 million at current prices. Rather than selling any of it, the company secured a loan from Coinbase by using its Bitcoin as collateral. This allows them to pay the settlement while holding on to their crypto, a strategy some other firms have also used to keep their Bitcoin stash intact.
This approach mirrors what companies like MicroStrategy have done in the past. For example, MicroStrategy borrowed money multiple times to buy Bitcoin, even issuing corporate bonds to fund purchases. In fact, the company now holds over 531,000 Bitcoins, the most by any public company.
Bigger Plans for Bitcoin Ahead
The new $500 million share offering isn’t just to cover legal bills. Semler says it plans to use some of the cash to expand its Bitcoin holdings. This move comes at a time when other firms are also doubling down on crypto, despite recent price swings.
For example, Japanese firm Metaplanet recently bought $26 million worth of Bitcoin, while MicroStrategy added another 3,450 Bitcoins valued at $286 million.
Crypto Market Still Sees Big Predictions
Although Bitcoin prices have been volatile lately, many analysts remain confident about its future. One crypto analyst, known online as “Titan of Crypto,” recently predicted that Bitcoin could reach as high as $137,000 — though they didn’t give a specific timeline.
While Semler hasn’t said exactly when it plans to raise the money or buy more Bitcoin, its recent filing shows that crypto remains a top priority for the company, even as it handles legal challenges.
