Bitcoin Holder Semler Scientific’s Bitcoin Shares Now Available for Options Trading.
The analyst who wrote this piece owns shares of Semler Scientific (SMLR) and MicroStrategy (MSTR). These two companies stand out in the crypto space for their unique approaches to integrating blockchain technology with traditional industries. Semler Scientific, a small-cap medical device maker, is notable for adopting a Bitcoin treasury strategy earlier this year. This month, its shares became available for options trading following six months of share-price growth driven by its BTC pivot and capital-raising efforts.
The Background of Semler Scientific
Semler Scientific’s journey into the Bitcoin space began with a Bitcoin (BTC) pivot in December 2023. This move was part of their broader strategy to enhance profitability through innovative medical devices powered by blockchain technology. Earlier this year, the company sought approval from options exchanges to allow options trading on its shares. At the time, Semler believed it met the eligibility requirements for such a market launch.
Despite no official announcement having been made as of Tuesday morning U.S. hours, preliminary checks revealed that the options were indeed available for trading. This development comes after six months of share-price growth driven by Bitcoin activity and capital-raising initiatives.
The Eligibility Requirements for Options Trading
The introduction of options on a stock provides investors with new tools to hedge risk and speculate on price movements. To facilitate this, specific requirements must typically be met:
- Minimum Share Price: Around $3-$5
- Minimum Market Capitalization: At least $75 million
- Sufficient Trading Volume: Approximately 500,000 to 1 million shares per day
- Minimum Number of Publicly Available Shares and a sufficient number of shareholders.
Semler Scientific’s stock price has nearly tripled since it made public its initial Bitcoin purchases in May 2023. As of Monday’s close, the stock was valued at over $74, reflecting significant growth. The company’s market capitalization tops $6 billion, positioning it as a substantial player in the crypto space.
Recent Developments and Capital-raising
Semler Scientific recently filed a second prospectus supplement under its S-3 Shelf. This filing has led to an additional $50 million in share offerings under its existing at-the-market (ATM) program. The total offering now stands at $150 million, up from approximately $100 million raised through ATM issuance earlier.
The company’s current Bitcoin holdings amount to 2,084 units, purchased for a total of $168.6 million ($81,000 per unit). These holdings are valued at around $222 million as Bitcoin’s price fluctuates in the broader market.
The Vision for Semler Scientific
Semler Scientific aims to replicate the success trajectory of MicroStrategy (MSTR), a company known for its Bitcoin-enabled strategies. Unlike traditional share offerings, convertible notes present an attractive alternative for raising capital without causing immediate dilution of existing shares. This approach is particularly appealing in the context of growing interest in cryptocurrencies and decentralized finance (DeFi).
The active options market that Semler Scientific is targeting provides investors with a straightforward mechanism to hedge against price volatility, making convertible paper more attractive to potential buyers.
Conclusion
This piece highlights the dynamic nature of the crypto space and its impact on traditional industries. Semler Scientific’s integration of Bitcoin technology not only positions them for growth but also offers an exciting opportunity for investors looking to capitalize on the broader crypto phenomenon.
Disclaimer: This article, or parts of it, was generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
