Semler Resumes Bitcoin Strategy After Reaching DOJ Settlement Terms

Semler Scientific, the healthcare tech firm with a sizable Bitcoin reserve, is getting closer to resolving a long-running dispute with the U.S. Department of Justice. On Tuesday, the company said it reached an agreement in principle with the DOJ to settle potential violations related to the marketing of its main product, QuantaFlo.

Good to know

• Semler is prepared to pay $29.75 million to settle a DOJ investigation tied to its QuantaFlo product.
• The company holds over 3,100 BTC and plans to resume purchasing more.
• A $500 million shelf offering has been launched to help fund additional Bitcoin acquisitions.

The company disclosed it’s prepared to pay $29.75 million to put the matter to rest. Though the deal is not final yet, it represents a major step in closing a chapter that dates back to 2017.

Semler first received a civil investigative demand from the DOJ in 2017. Since then, the company says it has complied with multiple follow-up subpoenas. Talks around a possible settlement started in February of this year.

The DOJ had been examining whether Semler’s marketing of QuantaFlo, which is used to detect peripheral artery disease, violated federal anti-fraud laws. With the case nearly resolved, Semler now looks set to refocus on growth—and on Bitcoin.

To help cover the expected settlement, Semler has signed a loan agreement with Coinbase. The deal allows the company to borrow using its Bitcoin holdings as collateral. Semler plans to draw on this credit line, in addition to using its existing cash reserves, to pay the proposed fine.

The Coinbase-backed arrangement lets Semler hold onto its BTC exposure while gaining access to immediate liquidity. The company holds 3,192 BTC, making it one of the largest corporate Bitcoin holders in the U.S.

Company Will Buy More Bitcoin

Semler had paused Bitcoin purchases for more than two months while legal matters were being addressed. But now, Chairman Eric Semler has hinted that buying could resume soon. “Excited to buy more bitcoin,” he posted on X shortly after the announcement of the tentative DOJ agreement.

Confirming those intentions, Semler also launched a $500 million at-the-market shelf offering Tuesday evening. The proceeds, according to the company, will mostly go toward increasing its Bitcoin holdings.