Semler Scientific Turns to Bitcoin and SaaS to Reshape Its Future
Semler Scientific, a medical diagnostics company, is using its “slow money” Bitcoin buying approach to counter revenue challenges in its operations, according to a Benchmark analysis.
As of July 31, 2025, the company holds 5,021 BTC, valued at $586.2 million with a cost basis of $475.8 million, generating $110.4 million in unrealized gains year-to-date and a 31.3% Bitcoin yield.
That follows a holding of 2,321 BTC on Jan. 17, 2025, with a $28.9 million unrealized gain, showing rapid accumulation in 2025.
The approach, overseen by Joe Burnett, who was appointed Director of Bitcoin Strategy in June 2024, uses cash flow, low-cost debt, and at-the-market (ATM) issuances to gradually build Bitcoin reserves.
Semler’s diagnostics business, centered on its QuantaFlo product for peripheral artery disease (PAD), is affected by Medicare reimbursement changes and dependence on two major insurers, which accounted for 45% and 31% of Q2 2025 revenues.
The 43% decrease in year-over-year revenue in Q2 to $8.2 million represents these pressures.
Despite the pressures, Semler reported a Q2 2025 net income of $66.9 million, driven by $83.8 million in unrealized Bitcoin gains, leading to a 2.64% stock price increase to $35.37 following the Aug. 4, 2025, earnings release.
New Ventures: Semler’s SaaS Platform and Bitcoin Ambitions
Semler has announced new Bitcoin acquisition targets: 10,000 BTC by the end of 2025, 42,000 by 2026, and 105,000 by 2027, as detailed in its Q2 2025 financials.
To support this, the company launched CardioVanta, a Software-as-a-Service (SaaS) platform for heart failure and cardiac arrhythmia detection, expected to generate high-margin cash flow.
Although CardioVanta is in its early stages, Semler anticipates it will help offset diagnostic revenue declines and fund further Bitcoin purchases.
The company’s 91% gross profit margin in Q2 2025 supports its financial strategy, though a $29.8 million contingent liability from a Department of Justice (DOJ) settlement presents a potential risk.
Semler’s market Net Asset Value (mNAV) multiple of 1.24, compared to Strategy’s 1.97, suggests undervaluation, based on InvestingPro data as of July 16, 2025.
The mNAV value of 1.04 implies room for “smart leverage” to expand Bitcoin holdings, subject to dilution of shares from 9.6 million to 13.788 million shares by June 30, 2025, using ATM issuances, which can temper investor sentiment.
Unlike Strategy’s capital-raising model, Semler relies on healthcare cash flows to balance its diagnostics and cryptocurrency holdings.
Semler’s Stock Draws Praise Following Crypto Approach
Analysts have expressed confidence in Semler’s Bitcoin-focused approach.
On Aug. 5, 2025, Benchmark maintained a “Buy” rating with a $101 price target. Cantor Fitzgerald initiated coverage on July 29, 2025, with an Overweight rating and a $61 target, while Maxim Group assigned a Buy rating with a $95 target. Lake Street raised its price target to $71 from $40.
The consensus rating is 1.5—short of Strong Buy—with analysts noting Semler’s stock as undervalued given its Bitcoin holdings.
SMLR Stock Price: (Source: Yahoo Finance)
Despite Bitcoin’s volatility and ongoing diagnostic challenges, Semler’s approach is gaining attention. The CardioVanta launch and Bitcoin accumulation can change its financial path, although execution risks and the DOJ liability call for tracking.
