Semler Scientific and Metaplanet Adopts MicroStrategy’s Bitcoin Playbook

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As a seasoned crypto investor with a keen interest in the goings-on of publicly traded companies, I can attest to the transformative impact Bitcoin (BTC) has had on Metaplanet Inc (TYO: 3350) and Semler Scientific Inc (NASDAQ: SMLR). Both firms’ shares have experienced remarkable growth following their decision to adopt a Bitcoin strategy.

As an analyst, I believe adopting a Bitcoin strategy has significantly benefited Metaplanet Inc (TYO: 3350) and Semler Scientific Inc (NASDAQ: SMLR). This strategic move has likely contributed to their growth and success in recent times.

It has been observed that the stocks of both companies have experienced significant gains in the double and triple digits lately. This trend began following the lead of MicroStrategy Inc (NASDAQ: MSTR) and its adoption of Bitcoin this year. Notably, this illustrates how MicroStrategy’s move has encouraged other firms to consider investing in Bitcoin.

Zombie Companies Change Course with Bitcoin

At the Bitcoin Conference in Nashville last Thursday, I, as a representative of Semler Scientific, shared our story about adopting a Bitcoin strategy.

Based on Semler’s account, Michael Saylor of MicroStrategy identified certain businesses that merely generate sufficient revenue to keep functioning and repay debts. These firms possess meager surplus funds for expansion, putting them at risk of bankruptcy.

Upon being given this explanation, Semler acknowledged that his business fit this category. This realization came about due to the company’s stock failing to generate any optimistic feelings from investors and the fact that we had a substantial amount of cash on hand. At that juncture, Semler chose to emulate MicroStrategy under Saylor’s guidance and put our excess cash to good use.

Semler Scientific initiated its first Bitcoin purchase on May 28th, and since then, the value of the company’s shares has increased by approximately 40%. However, according to Bitcoin Treasuries data, the shares have declined by around 3.6% due to this Bitcoin investment. Metaplanet holds a comparable background with Semler Scientific in this regard.

Metaplanet Launches Bitcoin Acquisition Spree

Simon Gerovich, the head of Metaplanet, acknowledged that his business was showing signs of becoming a “zombie company.” Recognizing this, it became necessary for him to follow MicroStrategy’s strategy regarding Bitcoin.

During my early days at Metaplanet, I worked diligently on the financial statements, eliminating excess staff, settling debts, and shaping our company into what Michael Saylor might describe as a “zombie business” in search of a viable industry.

To date, Metaplanet Inc., a Japanese corporation, has expanded its Bitcoin holdings through several acquisitions. In early July, the company disclosed the purchase of an extra 42.47 Bitcoins, valued at roughly $2.42 million. With this latest buy, their entire Bitcoin stash amounted to 203.734 Bitcoins. More recently, they added another 21.88 Bitcoins to their collection, costing approximately 200 million Japanese Yen or around $1.2 million.

As an analyst, I would interpret the current situation as follows: I hold approximately 225.6 Bitcoins for Metaplanet, which equates to a value exceeding $15 million based on the present Bitcoin price of around $67,088.34, as indicated by CoinMarketCap’s data. Over the past day, we have experienced over 4% growth in Bitcoin’s value. For Metaplanet, embracing Bitcoin represents a strategic move to bolster our balance sheet while minimizing vulnerability to Japan’s rapidly declining yen.

It’s intriguing that both Semler Scientific and Metaplanet are willing to embrace the high level of unpredictability associated with Bitcoin.

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2024-07-26 13:19