Bitcoin Treasury Firm Semler Scientific Still Has 3X Upside: Benchmark

Semler Scientific (SMLR) is trading conscionable supra the marketplace worth of its bitcoin holdings, with a marketplace NAV (mNAV) of 1.04, highlighting what broker Benchmark calls a important valuation disconnect.

Markets, argued expert Mark Palmer pursuing the company's 2nd 4th net yesterday, are giving "virtually nary recognition for [Semler's] ample country to usage 'intelligent leverage' to adhd to its bitcoin holdings."

Reiterating his bargain standing and $101 terms people — oregon astir triple the existent terms of $35 — Palmer said there's overmuch "upside optionality" not priced into the stock.

Unlike different bitcoin treasury firms that thin connected assertive equity issuance, Semler is embracing a “slow money” approach, wrote Palmer.

Newly appointed Director of Bitcoin Strategy Joe Burnett laid retired a program to standard bitcoin holdings done a premix of operating currency flow, low-cost convertible debt, and selective at-the-money (ATM) issuances, each aimed astatine preserving shareholder worth and avoiding dilution.

The institution holds $100M successful 4.25% convertible notes owed 2030 and, according to management, has important headroom to contented long-term, bitcoin-backed indebtedness to amplify equity upside, the study noted.

As of July 31, Semler held 5,021 bitcoin with a $475.8 cardinal outgo ground and a marketplace worth of $586.2 million, reflecting a $110.4 cardinal unrealized summation and a 31.3% year-to-date BTC yield.

Management remains assured successful reaching its people of 10,000 BTC by year-end 2025, and semipermanent goals of 42,000 BTC by 2026 and 105,000 by 2027.

Benchmark’s $101 people is based connected a sum-of-the-parts investigation incorporating the expected aboriginal worth of Semler’s bitcoin treasury alongside its healthcare operations, including the emerging CardioVanta unit.

The stock, trading adjacent its bitcoin nett plus worth (NAV), reflects small premium for its strategical flexibility, a spread Benchmark believes volition adjacent arsenic the institution executes connected its superior strategy.

Read more: Semler Scientific Becomes 14th-Largest Public Bitcoin Holder After $25M BTC Buy