Corporate buyers for Bitcoin (BTC) have entered a streak, as the leading coin’s price is close to record levels. This time, Semler Scientific announced its latest purchase of 303 BTC.
Semler Scientific is rising in the ranks of corporate buyers. As Bitcoin (BTC) set new records above $104,000, Semler Scientific announced its latest purchase. Announcements of corporate buying are made after the fact but still work to support the market sentiment.
The company has taken up the model of buying BTC to achieve yield for its shareholders. Semler Scientific used its own cashflows to acquire a bigger BTC treasury. The company has also considered issuing debt or convertible bonds to acquire more BTC.
After the latest purchase, BTC retained its new level for the day at $102,597.80. Semler Scientific’s purchase is relatively small compared to the latest additions of MicroStrategy and Mara Holdings but still signals a readiness for building bigger corporate treasuries. In the past four weeks, fundraising and BTC purchases accelerated, turning into a staple for boosting BTC sentiment. The latest MicroStrategy purchase happened as BTC dipped under $90,000, before continuing to its record rally.
Unlike passive holders like Tesla, Inc., Semler Scientific also aims for yield for its shareholders, hinging on BTC’s appreciation. Semler Scientific is on track to join the top 10 corporate holders. Long-term predictions see almost all big companies adding some BTC to their treasuries.
Semler Scientific achieves high yield, while shares rally
Semler Scientific was formerly a medical technology company but pivoted to crypto ownership in May. The company has built up a relatively small treasury of 1,873 BTC. After the latest purchase, Semler Scientific achieved a cost basis of $78,553 per BTC.
The latest purchase was completed at an average price of $96,779 per BTC. The new addition follows purchases by MicroStrategy and Mara Holdings, expanding the trend of yield-bearing BTC treasuries. Semler Scientific has achieved a higher yield of 54.7% to date.
Semler Scientific is a relatively late arrival to the BTC buying game and has a higher cost basis. The rising BTC price, however, is not slowing down corporate buying. Instead, most of the top 20 corporate holders have updated their treasuries in the past few days.
Joining the corporate holder trend had a double effect on Semler Scientific. The company’s shares rallied from a low of $23 in September, up to their current one-year peak of $63. SMLR is still far from its post-pandemic high of $149.99. Most corporate stocks tied to BTC purchases have rallied by 100% with ease, based on adopting MicroStrategy’s playbook of buying more BTC.
Semler Scientific is one of the few entrants from outside the selection of mining companies. Backed by BlackRock and Vanguard, the company did not hesitate to raise another $50M share sale in November, in preparation for more BTC purchases.
Corporate buying adds to bullish sentiment
The recent corporate buying spree is adding to the bullish sentiment of the latest BTC rally. While the purchases are not gigantic on the scale of traditional finance, they are creating a supply crunch for BTC. Easily available BTC for big transfers are becoming scarce, as more large entities are holding their coins closely.
The recent corporate reserves combine with ETF buying and holding to create a new category of BTC owners. On-chain data shows whales hold a relatively small amount of BTC. On the other hand, as a whole, corporate owners are advancing in their control over the supply of 21M coins.
In total, BTC in the hands of corporations, ETF, and large-scale government holdings, already covers 13.60% of all BTC. That scale of holding of more than 2.8M BTC already surpassed the miner reserves of 1.91M BTC. The amount is still relatively lower compared to Satoshi Nakamoto’s initial holdings, as well as supposedly lost or locked BTC.
Corporate buying was already observed months ago, with warnings that retail traders may be selling too fast. After months of sideways trading for BTC, the year-end rally turned even more profitable for companies that built BTC treasuries.
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