Semler Scientific aims to raise $500 million in new securities after solving a massive case with the Department of Justice, according to a company filing. Healthcare technology companies will use some money to expand crypto holdings, which have already exceeded 3,000 coins.
The company enters a $30 million settlement with the Department of Justice
According to a recent Securities and Exchange Commission (SEC) filing, Semler Scientific has reached a $29.75 million settlement with the Department of Justice regarding marketing practices for its Quantaflo products. The investigation, launched in 2017, focused on potential violations of the federal prevention law regarding the way the company sold its flagship products.
Settlement negotiations have progressed over the past few months, with years of cooperation with several subpoenas. The transaction is not yet complete, but Semler has already got a way to fund payments, according to the company’s SEC filing on Tuesday.
Semler Scientific's filing with the SEC. Source: US SEC.
Coinbase loans to fund settlements without selling Bitcoin
Instead of liquidating Cryptocurrency Holdings, Semler intends to use loans from Coinbase to resolve the DOJ cases. The loan will be protected by the company’s large Bitcoin sanctuary at 3,190 BTC, worth around $267 million at its current market price.
This funding strategy allows Semler to meet legal requirements without liquidating cryptocurrency holdings. With Bitcoin as collateral, the company can maintain its balance sheet strength while meeting its settlement needs.
$5 billion securities filing refers to a bigger crypto plan
Apart from the settlement costs, Semler has filed an S-3 registration with the SEC to sell securities worth $500 million. This filing shows that the company is not just raising cash to pay the DOJ settlement, but also wants to increase Bitcoin significantly.
Image: Threads
This action takes place when other companies continue to accumulate Bitcoin in their financial resources. The filing reports that Michael Saylor’s company recently purchased 3,450 Bitcoin worth $286 million, increasing its holdings to 531,640 Bitcoin. Another company, Metaplanet, acquired $26 million worth of Bitcoin at the same time.
Image: Brookings Institution
Despite price fluctuations, market analysts remain bullish
Semler’s intended Bitcoin purchase timing is also a forecast of extreme price increases, while still being volatile in the market. Analysts who went on the handle “Titan of Crypto” predicted that Bitcoin had reached $137,000, but were not given a time frame for that price level.
Healthcare technology companies have not shown exactly to complete their securities offerings or buy more Bitcoin. Nevertheless, the SEC filing clearly shows that in addition to payments for the DOJ settlement, additional to cryptocurrency holdings remains a priority.
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