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CAMPBELL, Calif. - Semler Scientific, Inc. (NASDAQ:SMLR), a medical technology company with a market capitalization of $743 million and impressive gross profit margins of 91%, announced today the formation of CardioVanta, Inc., a wholly-owned subsidiary that will focus on early detection of heart failure and cardiac arrhythmia monitoring. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value metrics.
According to the company’s press release, CardioVanta will operate as a software-as-a-service business model and seek outside investment to fund its initial capital needs. The new subsidiary will concentrate on cardiac technology while Semler Scientific continues marketing its QuantaFlo device for peripheral artery disease detection. InvestingPro data shows the company’s cash flows can sufficiently cover interest payments, though short-term obligations currently exceed liquid assets.
"This exciting strategic plan aims to enhance our ability to combat chronic diseases, save more lives, and increase our Bitcoin holdings," said Eric Semler, chairman of Semler Scientific, in the statement.
The markets for early heart failure detection and cardiac arrhythmia monitoring are estimated to be in the multibillion-dollar range, with projected growth due to rising cardiovascular disease rates, technology advancements, aging population, and increasing adoption of remote monitoring solutions. While the company’s revenue declined 25% in the last twelve months, InvestingPro analysts predict a return to profitability this year. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
The Centers for Disease Control and Prevention reports that heart failure affects more than six million Americans and costs the U.S. healthcare system over $30 billion annually.
Semler Scientific describes itself as the second U.S. public company to adopt Bitcoin as its primary treasury reserve asset. The company plans to use proceeds from equity and debt financings, as well as operational cash flows, to accumulate Bitcoin while continuing its medical device business.
The announcement represents Semler’s strategy to operate in both the medical technology sector and cryptocurrency space simultaneously.
In other recent news, Semler Scientific reported a net loss of $64.7 million for the first quarter of 2025, with revenue dropping 44% year-over-year to $8.8 million. Despite these financial challenges, the company has raised approximately $114.8 million through an at-the-market offering, selling over 3 million shares of common stock. The proceeds have been partly allocated to the acquisition of Bitcoin, with Semler Scientific purchasing 455 Bitcoin for $50 million, increasing its total holdings to 4,264 Bitcoin. The company has also appointed Natalie Brunell to its Board of Directors, a move that aligns with its strategy to bolster its Bitcoin treasury. Brunell, a well-known figure in the Bitcoin community, will also join the Bitcoin Strategy Committee. Semler Scientific is actively using its healthcare business to generate cash for further Bitcoin acquisitions, with ambitious plans for its $500 million ATM program. Additionally, the company is seeking new 510(k) clearance for its QuantaFlo product, targeting expanded indications in the cardiovascular market. These developments underscore Semler Scientific’s dual focus on healthcare technology and strategic Bitcoin investments.
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