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Introduction & Market Context
Semler Scientific (NASDAQ:SMLR) presented its Q2 2025 results on August 4, 2025, revealing a significant strategic pivot toward Bitcoin accumulation while maintaining its healthcare technology business. The company reported a remarkable turnaround from Q1’s losses, driven primarily by Bitcoin appreciation rather than core business growth.
The presentation, titled "The Semler Vision: Monetary and Medical (TASE:BLWV) Freedom," outlined how the company is positioning itself as a Bitcoin treasury vehicle for institutional investors while continuing to operate its healthcare diagnostics business. This strategic shift comes amid continued pressure on the company’s traditional revenue streams.
SMLR shares closed at $34.46 on August 4, up 2.67% for the day, with an additional 1.39% gain in after-hours trading following the presentation.
Quarterly Performance Highlights
Semler reported net income of $66.9 million for Q2 2025, or $5.71 per basic share and $5.04 per fully diluted share. This marks a dramatic reversal from the $64.7 million loss reported in Q1 2025. However, the healthcare business continued to struggle, with revenues of $8.2 million, representing a 43.2% year-over-year decline.
The company’s profitability was largely driven by an unrealized gain of $83.8 million from the change in fair value of its Bitcoin holdings, based on a Bitcoin price of $107,176 at the end of the quarter.
As shown in the following chart of Bitcoin holdings growth:
By July 31, 2025, Semler had accumulated 5,021 Bitcoin with a market value of $586.2 million, a total cost basis of $475.8 million, and an unrealized fair value gain of $110.4 million. This represents a significant increase from the 877 Bitcoin held in Q2 2024.
The company’s Bitcoin metrics have been strong, with a Bitcoin yield of 31.3% year-to-date 2025:
Bitcoin Treasury Strategy
Semler Scientific has outlined an ambitious Bitcoin accumulation strategy, targeting 105,000 Bitcoin by the end of fiscal year 2027. The company’s roadmap shows progressive targets of 10,000 Bitcoin by the end of FY 2025 and 42,000 Bitcoin by FY 2026.
The following chart illustrates these accumulation targets:
To fund these purchases, Semler has relied on three primary sources: operating cash flow (~$72 million, 15%), convertible bonds (~$89 million, 19%), and ATM issuances (~$315 million, 66%). The company still has $303 million remaining in its ATM authorization as of July 31, 2025.
The funding breakdown is visualized in this chart:
Semler’s Bitcoin strategy is based on what it calls a "differentiated dual-powered BTC treasury model," which combines equity exposure with intelligent leverage. The company argues that Bitcoin equity can amplify returns compared to passive Bitcoin holding, offering approximately 1.2x Bitcoin exposure by "buying Bitcoin while shorting USD at low interest long duration."
The company currently ranks 15th globally and 6th in the US among public companies holding Bitcoin, as shown in this table:
Healthcare Business Update
Despite the focus on Bitcoin, Semler continues to operate its healthcare diagnostics business. The company describes its healthcare business as having "favorable customer economics" with medical technology sold on a SAAS basis to a large enterprise customer base.
However, the 43.2% year-over-year revenue decline suggests continued challenges, likely related to the CMS payment changes and reduced PAD testing volumes mentioned in the Q1 earnings report.
In response, Semler has launched CardioVanta, a new wholly-owned subsidiary focused on early detection of heart failure and cardiac arrhythmia monitoring. The company describes this as targeting large markets with an attractive high-margin, SAAS-based business model.
Capital Markets and Investor Base
Semler has been actively raising capital through its at-the-market (ATM) offering program. In Q2 2025, the company issued 4.1 million shares of common stock for net proceeds of $156.6 million. Post-quarter end through July 31, 2025, it issued an additional 1.1 million shares for net proceeds of $47.8 million.
The company’s stockholder base has expanded significantly, as illustrated in this chart:
From September 2023 to July 2025, Semler’s stockholder count nearly tripled from 11,078 to 32,164, reflecting growing investor interest in its Bitcoin strategy.
The company has also received positive analyst coverage, with both Cantor Fitzgerald and Maxim Group initiating coverage with "Buy" ratings and price targets of $101 and $95, respectively.
Forward-Looking Statements
Semler’s presentation makes the case that Bitcoin can become a $300+ trillion asset as the "monetary premium of other asset classes is getting siphoned into Bitcoin." The company argues that while most institutional capital cannot directly invest in Bitcoin (as ~97% is mandated to equity and credit), Bitcoin equity provides an alternative investment vehicle.
The company’s thesis is illustrated in this chart comparing asset classes:
For the upcoming Annual Meeting of Stockholders on September 5, 2025, Semler has proposed amendments to increase the total number of common stock authorized for issuance to 210,000,000 and to authorize 42,000,000 shares of "blank-check" preferred stock, indicating plans for continued capital raising to fund its Bitcoin acquisition strategy.
While Semler’s Bitcoin strategy has delivered strong results in Q2 2025, the company faces significant challenges, including continued healthcare revenue decline, Bitcoin price volatility, and the substantial dilution from ongoing share issuances. The sustainability of its current model will depend on both Bitcoin price appreciation and the ability to stabilize or grow its healthcare business.
Full presentation:
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