MicroStrategy and Semler Bet Big on Bitcoin Expansion with Recent Purchases

Highlights:

• MicroStrategy buys 15350 Bitcoins for 1.5 billion, bringing its total holdings to 439000 BTC.
• Semler invests 21.5 million in Bitcoin increasing its total holdings to 2084 BTC. 
• Both companies focus on Bitcoin to strengthen strategies and increase shareholder value.

MicroStrategy and Semler Scientific have both made large purchases of Bitcoin today. Both firms have increased their cryptocurrency holdings as part of strengthening their financial strategies. Semler Scientific spent $21.5 million to buy 211 Bitcoins, and MicroStrategy acquired 15,350 Bitcoins for $1.5 billion. These transactions illustrate the growing acceptance of Bitcoin by corporations. 

Both MicroStrategy and Semler Scientific announce further corporate #Bitcoin acquisitions this morning.

— Jorwhol Hodler (@jorwhol) December 16, 2024

MicroStrategy’s Big BTC Purchase

MicroStrategy paid an average price of $100,386 per Bitcoin. This brings its total Bitcoin holdings to 439,000 coins. MicroStrategy has spent $27.1 billion on these acquisitions at an average price of $61,725 per coin.

The software company now controls over 2% of Bitcoin’s total supply. The purchase is the sixth in six weeks for MicroStrategy, which has been on a buying spree. The company bought 21,550 Bitcoins for $2.1 billion last week. This reflects MicroStrategy’s commitment to its Bitcoin focused treasury strategy. 

MicroStrategy has acquired 15,350 BTC for ~$1.5 billion at ~$100,386 per #bitcoin and has achieved BTC Yield of 46.4% QTD and 72.4% YTD. As of 12/15/2024, we hodl 439,000 $BTC acquired for ~$27.1 billion at ~$61,725 per bitcoin. $MSTR https://t.co/SaWLNBVkrl

— Michael Saylor⚡️ (@saylor) December 16, 2024

The company’s profile has been boosted further by being included in the Nasdaq-100 index last week. This year, MicroStrategy’s stock has increased more than 540% mostly due to Bitcoin exposure. Michael Saylor, the chairman, has been a big supporter of the company’s Bitcoin strategy. This approach has also created significant value for the shareholders.

Semler Invests in Bitcoin

Semler Scientific has also increased its Bitcoin holdings. Between December 5 and December 15, 2024, the company purchased 211 Bitcoins for $21.5 million. The average price for these coins was $101,890. With this purchase, Semler now owns 2,084 Bitcoins. 

Semler Scientific has acquired 211 BTC for ~$21.5 million at ~$101,890 per #bitcoin and has generated BTC Yield of 67.0% QTD and 92.8% since adopting our BTC treasury strategy in May. As of 12/15/24, we held 2,084 $BTC acquired for ~$168.6 million at ~$80,916 per bitcoin. $SMLR

— Eric Semler (@SemlerEric) December 16, 2024

Semler began its Bitcoin strategy in May 2024. Since then, it has spent $168.6 million on Bitcoin at an average price of $80,916 per coin. The company funds its purchases through an at-the-market (ATM) equity offering and operating cash flow. 

Semler has also expanded its ATM offering. It has already raised $100 million from the sale of shares. This move will enable the company to continue funding its Bitcoin acquisitions and its financial strategy. Semler Scientific filed a second prospectus supplement to its S-3 Shelf. The company plans to offer an additional $50 million in shares through its ATM offering with Cantor Fitzgerald. This increases the total offering to $150 million. As of December 13, 2024, Semler has raised $100 million through the ATM offering.

Bitcoin Strategy Impact

Bitcoin is a cornerstone in the financial strategies of both companies. For MicroStrategy, the company measures its success in terms of the performance of its stock and Bitcoin holdings. To assess its strategy, Semler uses a metric called BTC Yield. BTC Yield is a percentage measure of Bitcoin holdings compared to its diluted share count. 

Semler reported a BTC Yield of 67% from October 1 to December 15, 2024. Since adopting the strategy in May, its BTC Yield has reached 92.8%. These results show how Bitcoin investments contribute to shareholder value. 

However, these strategies carry risks. Both companies rely on Bitcoin’s long-term value growth. A sharp decline in Bitcoin’s price could harm their financial positions. These purchases have also raised concerns among critics for their reliance on debt and equity. Despite the risks, MicroStrategy and Semler continue to stick to their Bitcoin strategies.