Semler Scientific to raise to $500M for buying more Bitcoin.
A $500 million securities offering has been submitted by Semler Scientific to the U.S. Securities and Exchange Commission (SEC). The business announced a $30 million settlement with the Department of Justice (DOJ) prior to this action. It is anticipated that the money raised will be put toward a number of business objectives, such as buying more Bitcoin.
Settlement between Semler Scientific and the DOJ
In a provisional settlement with the DOJ, Semler Scientific has agreed to pay $29.75 million to resolve allegations about the marketing of QuantaFlo, its flagship product. Allegations of possible violations of federal anti-fraud statutes are addressed in the settlement.
Even though the DOJ’s investigation began in 2017, Semler only recently engaged into negotiations to settle the case. The business said that the current settlement talks resulted from its compliance with multiple subpoenas over the years.
Semler revealed in its filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday that the settlement deal is still subject to revision. If the agreement is approved, the company plans to use a loan from Coinbase, secured by its Bitcoin holdings, to fund the $30 million payment. Semler’s current Bitcoin holdings amount to 3,192 BTC, valued at approximately $267 million today
Using Bitcoin as Security for a Coinbase Loan
Semler Scientific has teamed up with Coinbase, one of the biggest cryptocurrency exchanges, to finance the settlement.
The contract states that it will lend the company cash and digital assets, secured by its Bitcoin balance.
Coinbase’s cryptocurrency-based loan will guarantee that Semler has enough cash on hand to handle settlement without jeopardizing its cash flow in other areas of its business.
Plans to Buy More Bitcoin
Semler Scientific has indicated that it intends to buy more Bitcoin, not just the $30 million DOJ settlement. The business has registered an S-3 with the SEC to offer $500 million in securities to issue additional securities.
The corporation has stated that it intends to diversify its cryptocurrency holdings, and the proceeds from this sale will boost such holdings.
Semler’s plans to buy additional Bitcoin coincide with those of other businesses, like Strategy, which is run by Michael Saylor and likewise hoards the cryptocurrency. Strategy recently paid $285.8 million for 3,459 bitcoins, bringing its total holdings to 531,644 bitcoins.
Likewise, Metaplanet has purchased $26.3 million worth of Bitcoins, indicating that the company is still optimistic despite the market’s volatility. These acquisitions coincide with a possible reversal in the price of Bitcoin, which some analysts, including the Titan of Crypto, predict would reach $137,000.
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