Semler Scientific to Raise $85M to Bolster Bitcoin Stash

Publicly traded healthcare company Semler Scientific has decided to raise its convertible senior notes offering to $85 million, up from $75 million hours ago. The firm stated that the cash raised will be used to accumulate more bitcoin (BTC) and cover other general corporate expenses.

Semler Scientific to Boost BTC Holdings

The company announced that these notes carry a 4.25% annual interest rate and are scheduled to expire in 2030. Only eligible institutional investors can participate in the offering. Initial buyers have a 13-day window to purchase an additional $15 million in notes. The announcement added that the sale of the notes is expected to conclude on January 28th.

After the convertible note offering, Semler Scientific will bolster its BTC stash from its current balance of 2,321 bitcoin. Recall that the firm embraced BTC as a reserve asset in May 2024. Since then, it has adopted a practice of periodically purchasing the leading cryptocurrency.

Semler Scientific’s announcement to raise cash was accompanied by a price drop for its stock, SMLR. As of this writing, the stock sold for $55.24, representing a 9.66% decrease.

Convertible Notes – A New Normal

A convertible note is a fundraising mechanism that allows firms to raise capital by offering debt securities to investors at a fixed interest rate. At a later date, these debts can be converted to equity.

Notably, this would be Semler Scientific’s first convertible senior notes offering. Unlike the healthcare company, other firms have employed convertible notes as a fundraising model to accumulate cash. Most inject the raised capital into acquiring BTC.

MicroStrategy is an example of such a company. The U.S.-based business intelligence firm has raised billions through several convertible note offerings. Today, the firm holds 461,000 BTC, bought for $29.3 billion, cementing its position as the leading publicly traded company holding bitcoin.

Other firms that have embraced convertible senior notes to bolster their BTC holdings are MARA Holdings and Riot Platforms.