- Semler Scientific has agreed to a preliminary $29.75 million settlement with the U.S. Department of Justice over alleged anti-fraud violations
- The company will use its Bitcoin stash to pay the fine, but has filed to raise up to $500 million through a securities offering, intending to expand its Bitcoin holdings
- Despite facing a 5% unrealized loss on its Bitcoin investments, Semler remains committed to its cryptocurrency strategy
Semler Scientific has reached a preliminary settlement of nearly $30 million with the U.S. Department of Justice to resolve allegations of anti-fraud violations related to its QuantaFlo product. The company will use some of its Bitcoin holdings to pay the fee, but to support this and further its Bitcoin investment strategy, the medical technology and software provider plans to buy more through a $500 million securities offering. Despite current unrealized losses on its Bitcoin holdings, Semler continues to view cryptocurrency as a long-term store of value.
DOJ Settlement Leads to Bitcoin Raise
On April 15, 2025, Semler Scientific announced a preliminary agreement to pay $29.75 million to settle claims arising from a civil investigation by the Department of Justice. The allegations pertain to the marketing practices of its QuantaFlo product, Semler’s flagship product. The DOJ’s scrutiny centered on whether Semler’s marketing strategies for QuantaFlo may have misrepresented the product’s capabilities or compliance with regulatory standards. While specific details of the alleged violations have not been publicly disclosed, the investigation led to multiple subpoenas and extensive cooperation from Semler over several years.
To fund this settlement and bolster its Bitcoin reserves, Semler has filed a Form S-3 registration with the U.S. Securities and Exchange Commission, aiming to raise up to $500 million through the issuance of various securities. The company stated that the proceeds would be allocated for general corporate purposes, including expanding its Bitcoin portfolio.
Bitcoin Commitment Remains
Semler’s commitment to Bitcoin remains steadfast, even as it faces a 5% unrealized loss on its cryptocurrency investments. The company has previously acquired 3,192 BTC, which constitutes approximately 80.6% of its total market capitalization. Despite the current market downturn, Semler views Bitcoin as a long-term store of value and continues to pursue its investment strategy in the cryptocurrency space.
The company’s decision to raise substantial funds for Bitcoin investments, even in the face of legal challenges and market volatility, underscores its confidence in the long-term potential of cryptocurrency. As Semler navigates the complexities of regulatory compliance and financial strategy, its actions will be closely watched by investors and industry observers alike.
