- Semler Scientific has reached a tentative $29.75M settlement with the DOJ over potential fraud violations tied to its flagship product, QuantaFlo, with plans to use Bitcoin-backed loans and cash to pay the fine.
- The company hasn’t added to its 3,192 BTC stash in over two months, but now hints at resuming purchases after announcing a $500M securities offering — most of which is expected to go toward buying more Bitcoin.
- Chairman Eric Semler tweeted “Excited to buy more bitcoin” following the settlement news, signaling renewed bullish sentiment and possible return to aggressive BTC accumulation.
After months of legal tension, healthcare tech firm and notable Bitcoin holder Semler Scientific (SMLR) seems to be turning the page. In a filing dropped Tuesday, the company revealed it has reached a tentative agreement with the U.S. Department of Justice (DOJ) — agreeing, in principle, to cough up $29.75 million to settle claims tied to potential violations of a federal anti-fraud law over its marketing of QuantaFlo, its main product.
Now, rewind a bit. Back in 2017, Semler got hit with a civil investigative demand (CID) — basically a serious subpoena — that kicked off a lengthy back-and-forth with the DOJ. The company says it’s been cooperating ever since, responding to multiple subpoenas over the years. Things started heating up again in February when they entered into official settlement talks.
Fallout and Financing
That lingering legal cloud, paired with a drop in Bitcoin’s price, has done a number on Semler’s stock — with shares down a rough 37% so far this year.
But there’s a silver lining. In the same disclosure, Semler said it’s inked a new deal with crypto exchange Coinbase that lets them borrow cash and crypto using their Bitcoin as collateral. If the DOJ gives the final green light to the settlement, Semler plans to tap into that loan facility — alongside its own cash — to cover the nearly $30 million bill.
It’s worth noting this DOJ deal isn’t locked in yet. It’s still “in principle,” so there’s a bit of waiting game left to play.
Back on the Bitcoin Train?
Despite holding over 3,100 BTC, Semler hasn’t been buying lately, likely playing it safe with the legal stuff looming overhead. But that might be changing soon.
“Excited to buy more bitcoin,” tweeted Eric Semler, the company’s chairman, right after news of the deal broke.
And he’s not bluffing — Semler also just announced a $500 million at-the-market mixed securities shelf offering. Translation? They’re looking to raise serious capital, with much of it likely earmarked for—you guessed it—stacking more sats.
So, between closing the DOJ chapter and gearing up to reload on Bitcoin, Semler might be prepping for a fresh start… and possibly a bullish run ahead.
