Executives at Metaplanet and Semler Scientific are singing the praises of MicroStrategy’s Bitcoin playbook, crediting it for pulling their companies out of “zombie” status and revitalizing their stock performance. The influence of MicroStrategy’s chairman, Michael Saylor, was a key factor in their decision to pivot towards Bitcoin, a move that has had significant impacts on their companies’ financial health and market perceptions.
At the Bitcoin Conference in Nashville on July 25, Semler Scientific’s chairman, Eric Semsler, detailed how Saylor’s insights led to a major strategic shift. Semler acknowledged that his company was stuck in a rut, barely earning enough to keep operating and service debts, a classic case of a zombie company. Despite being cash-rich, their stock was underperforming, prompting them to reevaluate their approach. Inspired by Saylor’s advocacy for Bitcoin, Semler Scientific decided to integrate the cryptocurrency into their financial strategy. Since their first Bitcoin purchase on May 28, Semler Scientific’s share price has surged by 40%, even though the company is currently down 3.6% on its Bitcoin investment according to Bitcoin Treasuries.
Similarly, Metaplanet CEO Simon Gerovich recounted his firm’s turnaround. Once a struggling entity on the verge of insolvency, Metaplanet began to exhibit zombie-like traits. Gerovich undertook measures to stabilize the company, including cleaning up the balance sheet, reducing staff, and paying down debt. However, it was the realization that Bitcoin could bolster their balance sheet and hedge against the depreciating Japanese yen that marked a turning point. By embracing Bitcoin, Metaplanet aimed to secure what they saw as the apex monetary asset for their treasury. Since their first Bitcoin purchase on April 23, Metaplanet’s stock price has skyrocketed by an astonishing 980%.
The adoption of Bitcoin has not been without its challenges, particularly the extreme volatility associated with the cryptocurrency. Both Semler Scientific and Metaplanet have accepted this volatility as a new norm, viewing it as a source of opportunities rather than a deterrent. Semler noted the shift in their shareholder base and the heavy trading volumes, which he believes could lead to Semler Scientific’s stock being traded in the options market in the future. Gerovich, on the other hand, hopes the increased liquidity will eventually allow Metaplanet to offer a convert issuance.
The journeys of Semler Scientific and Metaplanet underscore the transformative potential of strategic Bitcoin adoption. Inspired by MicroStrategy’s playbook, both companies have managed to revitalize their financial health and market standing. While the path has not been without its hurdles, the substantial gains in their stock prices reflect the positive impact of integrating Bitcoin into their financial strategies.
