Semler Scientific (NASDAQ: SMLR) is gaining attention for more than just its healthcare technology. The company’s strategic expansion into bitcoin treasury management could unlock significant upside — yet the market appears to be missing the bigger picture.
At just $35 per share, Semler is trading close to the value of its bitcoin holdings, offering little premium for its strategic leverage or long-term goals.
Bitcoin Holdings Make SMLR a Hidden Crypto Asset Play
According to Benchmark analyst Mark Palmer, investors are overlooking Semler’s unique approach to growing its bitcoin reserves. The stock’s market net asset value (mNAV) is just 1.04, indicating that shares are priced almost solely on its BTC portfolio, not its underlying business or expansion plans.
Semler currently holds 5,021 BTC, valued at over $586 million as of July 31.
That’s an unrealized gain of $110.4 million over its $475.8 million cost basis — with a year-to-date bitcoin yield of over 31%.
“Slow Money” Bitcoin Strategy Aims to Avoid Dilution
Unlike other crypto treasury firms that aggressively issue equity, Semler is pursuing what Benchmark calls a “slow money” strategy. Their roadmap includes:
- Using operating cash flow
- Issuing low-interest convertible debt (like the $100M in 4.25% notes due 2030)
- Deploying selective ATM (at-the-money) offerings
This conservative capital management is designed to expand BTC exposure without harming shareholder value.
Semler Targets 10,000 BTC by 2025 — And More
Management remains committed to a target of 10,000 BTC by year-end 2025, with long-term plans to reach:
- 42,000 BTC by 2026
- 105,000 BTC by 2027
Such growth would radically transform Semler’s balance sheet, potentially reshaping it into one of the largest public BTC holders outside of MicroStrategy.
Benchmark’s $101 Price Target: More Than Just Bitcoin
Palmer’s $101 price target is based on a sum-of-the-parts valuation, combining Semler’s future bitcoin holdings with revenue from its healthcare division — particularly the CardioVanta unit.
With upside optionality, strategic flexibility, and a strong BTC balance sheet, Benchmark believes the current undervaluation will close as execution improves.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.