Medical device maker Semler Scientific seeks $75m in convertible notes to buy more Bitcoin

Semler Scientific is seeking $75 million through a private offering of convertible senior notes, intending to use a portion of it for Bitcoin investments.

Public medical device maker Semler Scientific announced plans to offer $75 million in convertible senior notes, with a portion of the funds earmarked for the purchase of Bitcoin (BTC). The offering will be made to qualified institutional buyers pursuant to Rule 144A under the Securities Act, the company said in a Jan. 23 release. press release.

The notes will mature in 2030 and earn interest every six months. Once converted, Semler Scientific can pay in cash, stock, or both. Final details, such as the interest rate and conversion conditions, will be fixed when pricing the notes, the press release said.

A key element of this offering includes “capped call transactions” to help protect the company’s shares from dilution. These transactions aim to reduce the impact of ticket conversion. If buyers decide to purchase more tickets, more capped calls will be made.

The Santa Clara-based company says it plans to use a portion of the revenue to cover the costs of these capped call transactions. The rest will be spent on general corporate goals, including “acquiring Bitcoin.”

According to data from BitBo, Semler Scientific owns 2,321 BTC, worth over $244 million, or 0.011% of the total Bitcoin supply. The company revealed for the first time its Bitcoin Treasury projects in May 2024, and since then its shares under the ticker SMLR have risen more than 140%, according to Google Finance data.