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

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

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

The notes will be due in 2030 and will earn interest every six months. When converted, Semler Scientific can pay in cash, shares, or both. The final details, like the interest rate and conversion terms, will be set when the notes are priced, the press release reads.

A key part of this offering includes “capped call transactions” to help protect the company’s stock from dilution. These transactions aim to reduce the impact of converting the notes. If the buyers decide to purchase more notes, more capped calls will be made.

The Santa Clara-headquartered company says it plans to use some of the proceeds to cover the costs of these capped call transactions. The rest will go toward general corporate purposes, including the “acquisition of Bitcoin.”

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