Key facts: Stony Chambers analysts believe SMLR stock is undervalued. The company is following in the footsteps of MicroStrategy, accumulating bitcoin as a reserve. Analysts at Stony Chambers, a financial investment and market research firm, have set their sights on Semler Scientific. This is a healthcare and pharmaceutical company, which they see great upside potential thanks to its investment in bitcoin (BTC). Semler Scientific, which operates on the NASDAQ under the ticker SMLR, first announced its strategy to acquire bitcoin last May, when he bought 581 BTC for $40 million. A few days later, on June 6, it announced an additional purchase of 247 BTC for a total of $17 million. In total, SMLR has 828 BTCaccording to data from BitcoinTreasuries. He did this because he considers bitcoin as A reliable store of value, a compelling investment against inflation and a refuge from global instability. It also emphasizes bitcoin's digital technology to give it greater relevance than gold as a store of value. The market received the company's news positively. Before announcing the purchase of BTC, the share price was $22; after the purchases were made, the price reached $44, as shown in the following TradingView chart.
SMLR Price. Sources: TradingView. On the current day, SMLR is trading at $32 per share, up 45%since they adopted BTC. Despite this rise, Stony Chambers analysts believe that the stock is undervalued. This indicates that it is an investment opportunity, they note in a report. In addition to its investment in bitcoin, the company has a product called QuantaFlo, a device designed to diagnose peripheral arterial disease (PAD). QuantaFlo’s revenue is mostly secured thanks to its competitive advantage over substitute solutions. This could further boost the share price..
Semler Scientific replicates MicroStrategy's strategy
Analysts suggest that SMLR’s purchase of BTC has led “many people to think that SMLR is imitating MicroStrategy’s example.” To that, they acknowledge that “there are obvious parallels.” This has investors wondering if SMLR could be the next MicroStrategy. In that sense, Specialists respond that they do not believe that this will happen.but they are optimistic about stocks and, in general, about any company that is adopting a bitcoin treasury. MicroStrategy, a company led by Michael Saylor, accentuates its favorable position on BTC through the DCA (Dollar Cost Averaging) strategy. In this strategy, staggered purchases of bitcoin are made to average the purchase price and take refuge from the volatility of the digital currency. It is currently the publicly traded company with the most bitcoin in the world with 214,400 bitcoin, equivalent to 7.542 billion dollars.
The 20 Publicly Traded Companies With the Most BTC in the World. Source: BitcoinTreasuries “SMLR has only used its cash reserves to acquire BTC. This is very different from MicroStrategy, which has few cash reserves and is issuing debt to raise money to buy BTC.” The key difference is that bitcoin accounts for a much larger portion of MicroStrategy’s total value compared to SMLR. In MicroStrategy’s case, almost half of the company’s value is tied to the price of bitcoin. This means that if the price of bitcoin goes up, MicroStrategy’s value will also increase significantly, but if it goes down, MicroStrategy’s losses will be much larger, the report says. SMLR could likely become a BTC holding and acquiring entity, much like what MicroStrategy has become. However, it would not have the same kind of scale and access to capital because it is still a small-cap company, making it not the next MicroStrategy. The company will likely continue to buy bitcoin with the money it makes, says Stony Chambers. This is because unlike other companies that focus only on Bitcoin mining, SMLR has other activities, which makes it less vulnerable to volatility in the price of digital currency. Therefore, the market could recognize this diversification and value SMLR more highly compared to other companies that only invest in bitcoin. This means that the company could be worth 4 times more than the total value of its bitcoinhe adds.
Information about SMLR. Source: Semler Scientific.
Semler Scientific, a former “zombie company”
Eric Semler, CEO of Semler Scientific, participated in the Bitcoin 2024 conference, which took place in Nashville, United States, last week. During his speech, he mentioned that his inspiration to get into bitcoin had been MicroStrategy, as reported by BitcoinDynamic. Semler —during his presentation— He said they were a zombie companyHowever, after adopting bitcoin, the company “revived.” “Zombie companies” are those companies that do not generate enough income to cover their expenses and constantly rely on debt to survive.