Semler Scientific shares traded lower on Tuesday after reporting second-quarter earnings. Revenue came in at $8.22 million, which was slightly above consensus estimates. Of note, more than 100% of the company’s $66.9 million net income stemmed from an unrealized bitcoin mark-to-market gain of $83.8 million.
The healthtech company is among the 15 largest publicly traded holders of bitcoin, owning 5,021 BTC as of July 31, with a cost basis of about $475.8 million. And with Semler (ticker SMLR) trading at market Net Asset Value (mNAV) of 1.04, Benchmark analysts said the firm’s earnings call underlines its sources of upside optionality not reflected in its current valuation.
“While SMLR has taken a deliberate approach to its bitcoin acquisition strategy that stands in contrast to some of its more aggressive peers,” analysts led by Mark Palmer wrote in a note to clients, “its stock’s market value gives virtually no credit for its ample room to use ‘intelligent leverage’ to add to its bitcoin holdings [or] its newly energized focus with the recent addition of Joe Burnett as Director of Bitcoin Strategy.”
On the earnings call, Burnett said Semler is avoiding “fast money” tactics like issuing stock quickly for bitcoin buys. Instead, it’s focused on “slow money” — using tools like cash flow, low-cost debt, and selective ATM issuances to gradually expand holdings in ways that boost long-term shareholder value. Along with Burnett’s hiring in June, the company announced plans to hold 10,000 BTC by the end of 2025, 42,000 BTC by year-end 2026, and 105,000 BTC by year-end 2027.
Semler’s core business line
The analysts also noted Semler’s prospects of turning its healthcare business into a source of consistent cash flow to fund further acquisitions.
Semler’s main diagnostic business, especially its QuantaFlo device, has struggled due to Medicare reimbursement changes tied to new coding rules for peripheral artery disease (PAD), which cut payments and hurt revenue. The company’s customer base is also concentrated among a few major insurers.
To respond, Semler launched CardioVanta, a SaaS business focused on heart failure detection. Leadership believes CardioVanta could become a major cash generator, supporting both business growth and future bitcoin purchases.
Benchmark reiterated a “buy” rating and $121 price target on SMLR shares.
Semler Scientific’s stock traded down 2.8% to $34.37 on Tuesday, according to The Block’s SMLR price data. Shares are down nearly 40% so far this year.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
