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Shares of Semler Scientific (SMLR) jumped by 43.1% on Tuesday after the medical device maker announced a new cash-management strategy that involves investing heavily in Bitcoin. The company, which had $62.8 million in cash reserves at the end of March, has purchased 581 bitcoins for a total of $40 million. Semler's management cited Bitcoin's reliability as a store of value and its potential for generating outsized returns as reasons for the move. Despite the investment in cryptocurrency, the company emphasized that its main focus remains on fighting chronic diseases with its flagship product, the QuantaFlo blood flow testing device. However, the decision to invest in Bitcoin has effectively turned Semler Scientific into a crypto stock, with its value now likely to be closely tied to the price of Bitcoin.
