Semler Scientific sees after-hours stock slump as Q1 revenue plunges

Bitcoin-buying medical device firm Semler Scientific has seen its share price drop after the bell as its first-quarter revenues fell and losses deepened from the year-ago quarter.

In its Q1 earnings report released May 13, Semler reported its total revenues fell 44% from the year-ago quarter to $8.8 million, with its net losses hitting $64.7 million compared to a net income of $6.1 million in the first quarter of 2024.

Shares in Semler Scientific (SMLR) closed the May 13 trading session up over 5% but fell 1.91% to $36 after the bell with its earnings announcement, according to Google Finance. Semler’s stock is down over 32% so far this year.

Semler fell nearly 2% after announcing its Q1 results on May 13. Source: Google Finance

The company said it purchased 894 Bitcoin (BTC) over Q1 and held 3,192 BTC at a fair value of $263.5 million at the end of the quarter, which reflected a cumulative decrease of $16.9 million.

Semler added that between the end of Q1 and May 12, it purchased 616 BTC for a total cost of $59.6 million, increasing its holdings to 3,808 BTC at a fair value of $387.9 million at a purchase cost of $340 million.

Semler said that it made an unrealized gain of $41.6 million on its Bitcoin holdings over Q1, and its paper gains have continued to climb to $52 million so far this year, as of May 12.

Currently, Semler’s Debt to Bitcoin net asset value stands at 25.3%, according to its Bitcoin dashboard.

Semler has been aggressively ramping up its Bitcoin holdings. In an April 15 SEC filing, the company laid out its plans to sell $500 million of its own shares, with part of the proceeds being used to bolster its Bitcoin treasury.

Bitcoin buying firms on the rise

Bitcoin investment firm River reported that corporations and businesses have been the largest net buyers of Bitcoin so far this year, outpacing exchange-traded funds and retail investors.

Nearly 787,000 BTC is held by a total of 104 public companies, according to Bitcointreasuries.net data.

Strategy, formerly MicroStrategy, has been the largest Bitcoin buyer and currently holds more than 568,000 BTC, or nearly 2.7% of Bitcoin’s total supply.

Related: Semler Scientific buys another $10M worth of BTC

Analysts have stated that Bitcoin is now deflationary, as Strategy has claimed it has no plans to sell its Bitcoin holdings.

Meanwhile, on May 13, stablecoin issuer Tether bought $459 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment company it has backed that is set to merge with Cantor Equity Partners.

Twenty One Capital is currently the third-largest Bitcoin holder after Strategy and MARA Holdings.

Blockstream CEO Adam Back said in April that demand from institutions will likely lead to “hyperbitcoinization,” which could see the asset’s market capitalization soar past $200 trillion.

Magazine: Adam Back says Bitcoin price cycle ’10x bigger’ but will still decisively break above $100K