Key Points
- Eric Semler, Chair of Semler Scientific, advises Zoom to adopt a Bitcoin treasury strategy to boost its struggling stock.
- Semler Scientific’s similar strategy has doubled its stock price over the past year.
Despite having $7.7 billion in cash, Zoom Video Communications’ stock has struggled to grow. Eric Semler, Chair of Semler Scientific, has suggested that Zoom should consider a Bitcoin treasury strategy.
Semler believes that this approach could boost Zoom’s growth, attract investors, and increase its stock value. Despite being a medical technology company, Semler Scientific has successfully implemented a similar strategy, which has resulted in a doubling of its stock price over the past year.
Zoom’s Stock Market Struggles
Zoom’s stock saw a significant increase during the COVID-19 pandemic in 2020. However, the company’s growth has slowed down, and it’s facing stiff competition. Semler referred to Zoom as a “Zombie Zone” stock, implying that it has little growth.
Over the past three years, Zoom’s shares have declined by approximately 40%, underperforming the S&P 500 by about 73%. Over a five-year timeframe, Zoom has lagged the S&P by approximately 84%. Despite these struggles, the company remains profitable, with a strong 40% EBITDA margin and $458 million in cash generated last quarter.
Investors are concerned about Zoom’s slow revenue growth and lack of a clear plan. Semler suggests that with nearly one-third of Zoom’s $25 billion market cap held in cash, the company needs to make a bold move to regain momentum.
Bitcoin as a Potential Solution for Zoom
Semler believes that buying Bitcoin could be the breakthrough Zoom needs. Semler Scientific recently purchased 871 Bitcoin units for $88.5 million, bringing its total holdings to 3,192 BTC. This investment has helped increase its stock value.
Zoom has $2 billion in yearly cash flow and access to cheap loans. Semler believes it could become one of the biggest companies holding Bitcoin as it has the resources to make this happen.
Eric Semler also noted that Zoom’s founder and CEO, Eric Yuan, has the final say. He owns special voting shares, allowing him to make this decision independently. However, Yuan has not publicly shared any opinions on Bitcoin.
This has raised questions about whether he would consider such a shift. Semler’s advice for Zoom to adopt a Bitcoin strategy reflects a growing trend in the tech and finance industries.
Companies like Strategy (formerly MicroStrategy) and Tesla have invested in Bitcoin. These firms view the asset as a way to protect against inflation and boost their financial growth.
Recently, it was highlighted that Strategy’s MSTR stock outperformed the broader market. The Virginia-based company achieved a 4.1% Bitcoin yield year-to-date in 2025 after a recent bet on Bitcoin.
