Semler Scientific is a medical device manufacturer that has surely done something to impress: it turned a large part of its cash into bitcoin. What really struck me was the fact that the company was willing to copy from MicroStrategy, which was an early mover in using bitcoin as a treasury strategy. There's Eric Semler, the chairman who has been most instrumental in this move.
To me, what's plain is that Semler Scientific is thinking out of the box and, therefore, looking for new ways to provide value to shareholders. With a significant amount of free cash on its balance sheet and a steady stream of positive cash flow, the company was looking for ways to make its assets work harder. I think that's where bitcoin comes in, to be a possible store of value and hedge against inflation.
Of course, this strategy is not risk-free, but again, considering the nature of Semler Scientific, I think it's worth mentioning they did their homework and watched how MicroStrategy was doing well before taking the leap.
One thing that really hit home for me was something Eric Semler said: "You must have some conviction about the choices you make.". He's right; if you truly believe in something, you should be willing to buy it even when the price is moving against you. That takes a lot of courage, especially where a volatile asset like bitcoin is concerned. I think this is an important mindset for any investor looking to create a meaningful return on their investment. It's not about following the herd or riding the wave, but independent research and conviction.
I have been watching the space for Bitcoin for quite a long time, and I must tell you that its resilience in the light of all odds impresses me hugely. The collapse of the Silicon Valley Bank was a very big test for this cryptocurrency, it came out with flying colors.
Not to say that bitcoin is unsusceptible to market changes, but it has shown so much staying power over the years. That in itself is what any investor would want to see in every asset they invest their money in.
Worth noting also is the recent decision by Semler Scientific to raise capital for the purchase of more bitcoin. Though the company is still awaiting SEC approval, in my view, the move underlines its commitment to the strategy it has adopted toward its bitcoin. It's not just a one-time experiment, it's long-term, seeing bitcoin be part and parcel of its treasury operations.
Posted Using InLeo Alpha