Semler Scientific Discloses $41.8 Million Unrealized Bitcoin Loss for Q1 2025

Semler Scientific, a prominent player in the healthcare and financial sectors, has reported a significant paper loss of $41.8 million tied to its Bitcoin holdings during the first quarter of 2025. This unrealized loss reflects the volatility in the cryptocurrency market, impacting the company’s balance sheet. Despite the downturn, Semler Scientific remains committed to its strategic investment in digital assets, underscoring its long-term confidence in Bitcoin’s potential. The report highlights the challenges and risks associated with corporate cryptocurrency investments, even for established firms.

Semler Scientific Sees Steep Losses

Despite the downturn, Semler remains heavily invested in the cryptocurrency and holds 3,182 BTC at quarter’s end. The firm, which ranks as the twelfth-largest corporate Bitcoin holder globally, right above Boyaa Interactive International Limited, continues to double down on its digital asset strategy.

CEO Doug Murphy-Chutorian reiterated this stance when he affirmed the company’s dual focus on Bitcoin accumulation and ongoing healthcare innovation. Financially, Semler projected modest revenue between $8.8 million and $8.9 million for the quarter, but operating losses are expected to land between $1.3 million and $1.5 million.

As of March 31, Semler reported having about $10 million in cash and cash equivalents.

In yet another strategic move, the company also announced plans to issue up to $500 million in securities, the proceeds of which are earmarked for general corporate purposes, including continued cryptocurrency purchases. However, investor sentiment appears wary. The company’s stock, traded under the ticker SMLR on the Nasdaq, has declined by more than 22% since the start of the year.

Agreement With DOJ

Semler Scientific announced via a separate 8-K filing that it has reached an agreement-in-principle to resolve longstanding legal concerns with the Department of Justice (DOJ). The company said that it is prepared to pay around $30 million to address allegations that it violated the False Claims Act through improper marketing practices tied to devices billed to Medicare.

The DOJ’s civil investigation dates back to 2017, when it issued a formal demand to examine potential fraud. While this proposed settlement would mark a major step toward resolution, Semler’s filing noted that a finalized agreement with the agency is not yet guaranteed.