Semler Scientific Increases Bitcoin Holdings with $5M Buy
Semler Scientific has announced a $5 million BTC acquisition to expand its token holdings. According to the medical tech firm, this acquisition is inspired by the growing institutional adoption of Bitcoin, which the likes of MicroStrategy and Metaplanet have led.
Strategic Bitcoin Move
In May, the Santa Clara-based company started experimenting with Bitcoin by purchasing 581 BTC for about $40 million, including fees and related costs. Following the Bitcoin purchase, the firm called the investment “compelling,” pointing to the unique characteristics of Bitcoin as a “scarce and finite asset.”
They contend that Bitcoin is a “haven” during times of international unrest and provides a robust hedge against inflation. This was the start of Semler Scientific’s continued advocacy for Bitcoin, which has become greater in the last few months.
Moreover, Semler Scientific purchased another 83 BTCs for $5 million in continuation of its crypto acquisition spree. Per the company’s official press release, the recent purchases were mainly financed by the cash generated from its operations and the earnings from its “at-the-market equity” program.
Semler Scientific’s conviction in the long-term worth of digital assets is strengthened by the purchase of these extra Bitcoins, especially at a time when institutional adoption of the cryptocurrency is expanding.
Rising Institutional Bitcoin Interest
Eric Semler, the chairman of Semler Scientific, pointed out that institutions currently manage more than 20% of the assets in Bitcoin ETFs, which is an accomplishment for the broader virtual currency industry. Following the latest buy, Semler Scientific has now acquired 1,012 Bitcoin for a total of $68 million.
In addition, the medical tech firm is now ranked 17th globally and among the top 20 public companies in the world in terms of Bitcoin ownership, according to data from Bitcoin Treasury. With over 1% of the entire Bitcoin supply held in its treasury, MicroStrategy highlights the important role that corporations are playing in broader BTC adoption.
Bitcoin’s Market Performance and Institutional Impact
On August 23, there was a spike in the prices of Bitcoin and other cryptocurrencies. The Federal Reserve Chairman Jerome Powell’s dovish remarks at the Jackson Hole symposium, which increased anticipation of a possible interest rate cut in September, contributed to this upward momentum.
Furthermore, the recent edition of “Bitfinex Alpha” stated that Bitcoin noted a daily gain of 6.06%, its second-highest daily move since May 20. Since July 12, there has been a stronger correlation between Bitcoin and the equity markets, which is indicative of the cryptocurrency’s growing popularity as an asset for investors.
Other Crypto Market Trends
Apart from the recent surge in value, there have been notable shifts in other aspects of the cryptocurrency market. With $40 million lost, Bitcoin perpetual futures saw their second-largest daily short liquidation last Friday.
The total amount of liquidations for all trading pairs exceeded $140 million. These losses draw attention to the risks and volatility that come with trading with leverage in the cryptocurrency markets.
Recall that open interest for Bitcoin trading pairs on all exchanges hit a record high of over $39 billion on March 29, 2024. But by August 5, this amount had fallen to $26.65 billion, the lowest since its all-time high.
This drop in open interest points to a possible decrease in leveraged positions in the market or a decrease in trading activity, which could indicate that traders and investors are becoming more cautious. Additionally, with Bitcoin trading between $60,000 and $65,000, a decreasing proportion of leveraged long positions in the market has led to progressively negative funding rates.
In comparison, Bitcoin reached its highest funding rates at comparable price points ever recorded in March this year. This change indicates the behavior of market players as they make their way through the complicated and unpredictable cryptocurrency landscape.
A similar trend is seen in the altcoin markets. The average funding rate for large-cap altcoins as of August 25 was 8.1%, a considerable decrease from the 60–70% APR observed in March and April. Observers noted that this decline in funding rates suggests a decline in speculative activities in the altcoin space as investors become more cautious about their investments.
