Semler Scientific (SMLR), a medical device company that embraced a bitcoin treasury strategy earlier this year, has now gained approval for its shares to be traded in the options market. This development follows a significant rise in the company’s share price, largely driven by its strategic decision to adopt bitcoin (BTC) as part of its capital management approach.
On December 5, Semler submitted a request to the options exchanges, and the approval was granted, enabling options trading on its shares. Brokerage accounts confirmed the availability of options early on Tuesday morning. This new trading opportunity offers investors additional ways to hedge against risks and speculate on Semler’s future performance.
Options are contracts that provide investors the right, but not the obligation, to buy or sell a stock at a set price before a certain expiration date. By offering options, Semler opens up avenues for investors to manage price volatility and potential changes in market sentiment.
To qualify for options trading, companies must meet specific criteria, including a minimum stock price, market capitalization, daily trading volume, and an adequate number of shareholders. Since Semler’s announcement about its bitcoin strategy in late May, its stock has surged, nearly tripling to over $74 per share, with a market cap now exceeding $600 million. On Tuesday morning, shares saw a 5% increase in premarket trading, bringing them up to $78.20.
Recently, Semler filed a second prospectus supplement under its S-3 Shelf registration, which includes an additional $50 million raised via its at-the-market (ATM) program. This brings the total amount raised through ATM offerings to $150 million, with $100 million already secured.
Semler has accumulated 2,084 bitcoins for a total of $168.6 million, at an average price of around $81,000 per bitcoin. Given the recent price of bitcoin at approximately $106,500, the value of Semler’s bitcoin holdings has increased to an estimated $222 million.
Semler appears to be following in the footsteps of MicroStrategy (MSTR), which successfully raised capital through the issuance of convertible notes to fund its bitcoin acquisitions. This approach allowed MicroStrategy to avoid immediate dilution of shares, making it a more attractive funding method. By launching options trading, Semler could enhance its appeal to investors and increase the attractiveness of its convertible notes, providing a further catalyst for growth.
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