Semler Scientific (SMLR) trades just above the market value of its bitcoin stocks, with a market’s NAV (MNAV) of 1.04, which highlights what broker Benchmark calls a significant valuation.
Markets, argued analyst Mark Palmer after the company’s earnings in the second quarter yesterday, giving “almost no credit for [Semler's] Ample space to use ‘intelligent leverage’ to add its Bitcoin stocks. “
Repeating his purchase rating and $ 101 price targets – or almost tripling the current price of $ 35 – Palmer said there is a lot of “up option” that is not priced to the stock.
Unlike other Bitcoin Treasury companies that lean on aggressive equity issues, Semler wrote a “slow money” approach, Palmer wrote.
The newly appointed director of the Bitcoin strategy Joe Burnett launched a plan to scale Bitcoin holdings through a mix of the operation of cash flow, low-cost convertible debt and selectively the money (ATM) issues, all for the purpose of maintaining the shareholder value and avoiding dilution.
The company has $ 100 million. In 4.25% convertible notes due to 2030, and according to management, it has a significant ceiling height to issue long-term, Bitcoin-backed debt to reinforce the equity, the report noted.
Per. July 31, Semler had 5,021 Bitcoin with a cost basis of $ 475.8 million and a market value of $ 586.2 million, reflecting an unrealized gain of $ 110.4 million and a 31.3% year to date BTC outcome.
Management is still sure to reach its target of 10,000 BTC at the end of the year 2025 and long -term goals of 42,000 BTC in 2026 and 105,000 in 2027.
Benchmark’s $ 101 target is based on a sum-of-part analysis containing the expected future value of Semler’s Bitcoin Treasury along with its health operations, including the new Cardiovanta device.
The stock, which acts near its Bitcoin Net Asset Value (NAV), reflects a bit of prize for its strategic flexibility, a GAP Benchmark believes that the company is performing its capital strategy.
Read more: Semler Scientific will be 14th largest public Bitcoin holder after $ 25 million. BTC purchase
