Semler files with SEC to issue $500M in securities after $30M DOJ settlement, eyes Bitcoin buys.
Regarding the marketing of its main product, QuantaFlo, Semler Scientific has struck a tentative agreement with the Department of Justice, agreeing to pay $29.75 million to address accusations relating to the advertising of the product.
The settlement addresses allegations that there may have been violations of federal anti-fraud legislation. Even though the Department of Justice (DOJ) began its investigation in 2017, it wasn’t until the most recent few months that Semler began conversations to find a solution to the problem.
The corporation has indicated that it has complied with a number of subpoenas over the course of the years, which is what led to the current negotiations for a settlement.
Semler acknowledged that the settlement agreement is not yet final in the filing that it submitted on Tuesday to the Securities and Exchange Commission (SEC) of the United States of America.
The company intends to use a loan from Coinbase, which will be secured by its Bitcoin holdings, to finance the thirty million dollar payment in the event that the arrangement is accepted.
The amount of Bitcoin that Semler currently possesses is 3,192 BTC, which is equivalent to around $267 million at the present time. Coinbase, which is one of the leading cryptocurrency exchanges, has formed a partnership with Semler Scientific in order to receive funding for the settlement.
A cash and digital asset loan will be provided to the company by it, and the loan will be secured by the company’s Bitcoin balance, as stipulated by the conditions of the contract.
Through the use of the cryptocurrency-based loan from Coinbase, Semler will be able to ensure that it has sufficient balance to permit settlement without putting it in jeopardy in other elements of its operations.
In addition to the thirty million dollar settlement with the Department of Justice, Semler Scientific has hinted at the intention to purchase further Bitcoin. With the intention of offering securities worth $500 million, the business has submitted an S-3 to the SEC in order to register it as a new issuer of securities.
This sale will result in an increase in the company’s Bitcoin holdings, which the company has stated is part of its strategy to diversify its cryptocurrency holdings. Semler’s plans to buy more Bitcoin align with other companies, like Michael Saylor’s Strategy, which is also acquiring the cryptocurrency.
In a recent transaction, Strategy acquired 3,459 bitcoins for a total price of $285.8 million. As a result, the company currently possesses 531,644 bitcoins.
In a similar vein, Metaplanet has purchased bitcoins worth $26.3 million, which demonstrates that the company continues to maintain a bullish stance despite the volatility of the market.
A probable reversal in the price of Bitcoin, which some analysts, such as the Titan of Crypto, have forecasted to reach $137,000, provides the impetus for these purchases.
