Semler Scientific Stock Options Begin Trading After Bitcoin-Fueled Price Surge

Semler Scientific, a medical device company that adopted a Bitcoin treasury strategy earlier, recently added options trading to the mix.
By Teuta Franjkovic
Semler Scientific Files To Buy $500M in Bitcoin Amid $30M DOJ Settlement

Highlights

  • Semler Scientific options trading now available after Bitcoin-fueled price surge,
  • SMLR increases share offering to $150 million, aiming to expand Bitcoin holdings.
  • The company considers convertible notes offering, following MicroStrategy's Bitcoin strategy.

Semler Scientific (SMLR), a small-cap medical device company that had adopted a Bitcoin treasury strategy earlier this year, recently added options trading to the mix.

This move is the latest in a run-up of six months for this stock, buoyed by the company’s adoption of Bitcoin (BTC) treasury strategy and continued capital raises.

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Semler Scientific Options Go Live

Semler Scientific (SMLR), a small-cap medical device company that embraced a Bitcoin treasury strategy earlier this year, recently introduced options trading as part of its offerings.

This follows six months of steady share-price growth for the company, fueled by its Bitcoin (BTC) pivot and ongoing capital-raising efforts.

The company applied to options trading back on December 5, citing a belief that it had been eligible for the same. It is still to make the official announcement, but a short check in showed options trading for Semler shares are available in some brokerage accounts.

Options are financial contracts that entitle investors with the right, but not the obligation, to buy or sell a stock at a predetermined price before a specified date. In general, options trading, upon its introduction, started providing investors with useful tools for hedging risks and speculating on market movements.

A stock must meet specific minimum requirements to be option-eligible. These usually include things like a minimum share price in the range of $3 to $5, a market capitalization of at least $75 million, and average daily trading volume between 500,000 to 1 million shares. In addition, there should be adequate freely floating shares available and an adequate number of shareholders.

Shares of Semler Scientific have surged about threefold to close above $74 Monday after the company said May 28 it first disclosed Bitcoin buys. The group has reached a market capitalization above $600 million amid news that SMLR has climbed 5% in Tuesday’s premarket session at $78.20.

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$150 Million Stock Offering to Fuel BTC Buys

The company has filed a second prospectus supplement under its S-3 Shelf, adding another $50 million in share offerings to the existing ATM program, bringing the offering total to $150 million. So far, Semler has issued roughly $100 million in proceeds under the ATM issuance.

Through Friday, Semler has invested 168.6 million for 2,084 Bitcoins or at an average cost basis around 81,000/Bitcoin. Its portfolio valued in today’s BTC price near $106,500 stands near $222m. Just on Monday it acquired $21.5 million in BTC.

Semler might look at emulating the success of high-profile Bitcoin holder MicroStrategy’s strategy of using convertible notes to raise money in a bid to expand Bitcoin holdings. Just for reminder, MSTR recently bought another 15,350 BTC for $15 billion.

Convertible offerings would be a way to raise capital without diluting existing shares and therefore could be more attractive from that standpoint. An active options market, which Semler plans to foster, would provide effective hedging tools for investors, making convertible notes more attractive to potential buyers.

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Teuta Franjkovic
Teuta is a seasoned writer and editor with over 15 years of expertise in macroeconomics, technology, and the crypto and blockchain sectors. She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*. Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain's potential, viewing cryptocurrency as one of humanity's most transformative innovations. Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.
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