Semler Scientific adds $10M in Bitcoin, boosting total to 3,300 BTC, while Riot Platforms secures $100M BTC-backed loan from Coinbase. Both moves highlight corporate crypto strategies during price fluctuations and regulatory changes.
Amid Bitcoin’s 8% price drop last week, California-based Semler Scientific acquired 111 BTC, while mining giant Riot Platforms leveraged its holdings for a nine-figure loan, testing corporate crypto strategies against market headwinds and new EU regulations.
Healthcare Company Expands Bitcoin Bet
Semler Scientific purchased 111 Bitcoin worth $10 million on 15 June 2024, according to its SEC filing. The Santa Clara-based medical device manufacturer now holds 3,300 BTC ($300 million), positioning it behind only MicroStrategy among corporate holders. CFO Doug Murphy-Hjerten emphasized the 23.5% shareholder yield from Bitcoin allocations during Wednesday’s investor call.
Mining Firm Secures High-Interest Crypto Loan
Riot Platforms finalized a $100 million credit facility with Coinbase Institutional on 18 June, collateralized entirely by Bitcoin holdings. The loan carries a 12% annual interest rate – up from 8% in similar 2023 agreements – reflecting tighter lending conditions. Proceeds will fund expansion of its Texas mining facility as operational costs rise 15% year-over-year.
Institutional Adoption Meets Regulatory Hurdles
The moves come as EU’s Markets in Crypto-Assets Regulation (MiCA) took effect 20 June, requiring detailed disclosures for corporate crypto holdings exceeding €5 million. Semler’s CTO confirmed compliance teams are ‘working through MiCA’s custody requirements’ while maintaining Bitcoin’s position as 92% of treasury reserves.
Historical Precedents and Market Context
Corporate Bitcoin accumulation strategies first gained prominence when MicroStrategy initiated purchases in August 2020. The business intelligence firm now holds 226,331 BTC ($14.6 billion), having added 11,931 BTC ($786 million) in its 15 June purchase. However, Bitcoin’s 8% price decline last week to $64,200 marks its worst performance since March 2024, testing the resilience of corporate balance sheets. Mining economics face simultaneous pressure, with network difficulty reaching 86.6 trillion on 17 June – a 32% increase from January 2024.
Comparing Treasury Models
Analysts contrast Semler’s pure accumulation strategy with Riot’s operational leveraging. JPMorgan’s 19 June research note suggests miners face ‘asymmetric risks’ from both Bitcoin price volatility and energy costs, while non-tech firms like Semler benefit from simpler accounting but lack natural hedges. The divergence recalls 2022’s market crash, when Marathon Digital sold 1,500 BTC to cover expenses while MicroStrategy held through losses.
Regulatory Crosscurrents
MiCA’s corporate reporting requirements echo SEC guidance from 2021 that initially chilled institutional adoption. Coinbase Institutional reported a 40% quarterly increase in crypto-backed loans despite these hurdles, suggesting firms view Bitcoin’s long-term potential outweighing compliance costs. Tesla’s Q1 earnings revealed it maintained 10,800 BTC ($690 million) through recent volatility, while Block continues developing Bitcoin mining chips despite 18% sector revenue declines.
