Semler Scientific Shares Drop Amid Convertible Notes Offering

According to CoinDesk, Semler Scientific, a medical-devices manufacturer, experienced a significant decline in its stock value, plummeting by as much as 15% following the announcement of its plan to issue $75 million in convertible senior notes. The company intends to allocate a portion of the proceeds from this offering to increase its bitcoin (BTC) holdings. This decision led to the shares falling to as low as $51 after U.S. trading hours on Thursday. In its financial update, Semler Scientific reported a 3.3% increase in fourth-quarter revenue, reaching $12.5 million, while income from operations rose by 8.8% to $3.7 million. The company also noted an unrealized gain of approximately $29 million from the change in the fair value of its bitcoin holdings. The proceeds from the note sale, which includes an option for an additional $15 million, will partly fund capped-call transactions aimed at mitigating stock dilution from a potential note conversion. The convertible notes are set to mature in 2030, with interest payments scheduled semiannually. These notes offer the flexibility of conversion into cash, company stock, or a combination of both. However, the full terms of the offering have not yet been disclosed. As of January 17, Semler Scientific held 2,321 BTC, acquired at an aggregate purchase price of $191.9 million, with an average price of $82,689 per bitcoin.