Key Points
- Metaplanet Inc and Semler Scientific Inc have adopted a Bitcoin strategy, leading to significant share increases.
- Both companies were inspired by MicroStrategy Inc’s Bitcoin playbook and are embracing the associated volatility.
Metaplanet Inc and Semler Scientific Inc have seen substantial growth in their shares following the adoption of a Bitcoin (BTC) strategy. This move has been highly beneficial for both firms, resulting in double and triple-digit increases in their shares.
The decision to adopt a Bitcoin strategy was inspired by MicroStrategy Inc, demonstrating how the company’s approach has influenced other firms to consider Bitcoin.
Adopting Bitcoin to Revive Companies
Eric Semler, Chairman of Semler Scientific, discussed his company’s decision to adopt a Bitcoin strategy at a recent Bitcoin Conference in Nashville. He explained that his company was one of the so-called ‘zombie companies’ that just earn enough to continue operating and service debt.
Semler admitted that his company fell into this category as their stock showed little positive sentiment despite being cash-rich. This led to the decision to follow MicroStrategy’s Bitcoin playbook and invest their cash in Bitcoin.
Since its first Bitcoin purchase on May 28, Semler Scientific’s shares have risen by 40%. However, data from Bitcoin Treasuries shows that the shares are currently down on the Bitcoin investment by 3.6%. A similar story can be seen with Metaplanet.
Metaplanet’s Bitcoin Acquisition
Simon Gerovich, the CEO of Metaplanet, also recognized his firm as a zombie company, leading to the decision to adopt MicroStrategy’s Bitcoin playbook. He described the process of cleaning up the balance sheet, reducing staff, and paying down debt, which put the company in a position to invest in Bitcoin.
Since then, Metaplanet has made several Bitcoin acquisitions. In early July, the company announced the purchase of an additional 42.47 Bitcoins, worth around $2.42 million. This brought their total Bitcoin holding to 203.734 Bitcoins. Last week, the firm purchased another 21.88 Bitcoin, worth approximately $1.2 million.
Currently, Metaplanet holds around 225.6 BTC, valued at over $15 million. For Metaplanet, adopting Bitcoin is seen as a way to strengthen its balance sheet while reducing its exposure to the fast-depreciating Japanese yen.
Both Semler Scientific and Metaplanet are prepared to accept the extreme volatility that comes with Bitcoin.
