Semler Scientific, a US-based publicly traded medical technology company, recorded an unrealized loss of $42 million on its Bitcoin holdings in the first quarter of 2025, after a sharp drop in cryptocurrency prices.  The disclosure, which is part of recent SEC filings, highlights the added financial risks that come with companies that integrate digital assets into their treasury management systems. 

Semler’s Bitcoin Strategy Backfires as Prices Drop

Semler Scientific first attracted attention in 2024 for its bold decision to diversify its balance sheet by acquiring Bitcoin. In a press release issued on February 4, 2025, Semler Scientific claimed that the company purchased 871 Bitcoins between January 11 and February 3, spending $88.5 million at an average price of $101,616 per coin. 

The corporation also reported outstanding returns from its Bitcoin strategy, with a total gain of 152% from July 1, the first full quarter after incorporating Bitcoin into its treasury, to February 3. So far in 2025, Semler’s cryptocurrency assets have returned 22%. Overall, it has spent almost $280.4 million on Bitcoin, with an average price of $87,854 per coin. 

In the first quarter of 2025, the strategy did not work out as planned when Bitcoin’s value plunged significantly from its earlier high, causing a substantial non-cash impairment on the assets. Amid the turbulent cryptocurrency market, Semler Scientific recorded an unrealized loss of roughly $41.8 million on its Bitcoin holdings during Q1 2025. This occurred as Bitcoin’s price dropped by 12%, falling from $93,500 in early January to $82,350 by the end of March, and eventually undergoing a more severe correction with a 32% decline by early April.

Semler reported to the SEC in a filing April 15 that it expects to have an unrealized loss of approximately $41.8 million due to the decline in fair value of its Bitcoin holdings after Dec. 31. The value drop was attributed to a general cryptocurrency market decline when Bitcoin briefly dropped below $89,000 toward the end of March, putting pressure on many companies’ asset prices that were exposed to Bitcoin. Despite the setback, Semler is continuing with plans for a $500 million securities issue.

Semler Plans $500M Securities Offering Despite Loss

Even with the losses, Semler is still bullish on Bitcoin and is actively looking for additional investment opportunities. On April 5, the firm submitted to sell as much as $500 million in mixed securities, which could be used to fund future acquisitions, including further digital asset purchases. The proposed offering, which comprises common stock, preferred stock, debt securities, and warrants, indicates that Semler will not back down from its pro-crypto stance. The business stated in its filing that:

“We view our bitcoin holdings as long-term holdings and expect to continue to accumulate bitcoin. We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional bitcoin purchases. This overall strategy also contemplates that we may periodically sell bitcoin for general corporate purposes or in connection with strategies that generate tax benefits in accordance with applicable law…”

Conclusion

Semler Scientific’s $42 million Q1 2025 unrealized loss indicates the two-edged character of commercial bitcoin adoption.  While the company is not impacted, the quick price volatility of Bitcoin points to the significant financial risks of such investments.  With regulatory scrutiny growing stronger and Bitcoin’s fate an uncertain one, companies in search of investing in cryptocurrency must be willing to risk both the possibility of huge gains and the very real risk of substantial losses.