Shares of Semler Scientific (SMLR), a small-cap medical device company that adopted a bitcoin treasury strategy earlier this year, are now available for options trading. This development follows a six-month period of growth driven by the company’s shift to bitcoin (BTC) holdings and its capital-raising initiatives.
Semler requested approval for options trading on December 5, believing it met the necessary eligibility criteria. While no official announcement has been made, a check of brokerage accounts on Tuesday morning showed that options were indeed available for trading.
Options contracts allow investors the right (but not the obligation) to buy or sell stock at a specified price before a set date. The introduction of options provides investors with additional tools for hedging risk and speculating on price fluctuations.
To qualify for options trading, stocks must meet certain criteria, including a minimum share price of $3–$5, a market capitalization of at least $75 million, and sufficient daily trading volume (around 500,000 to 1 million shares). Additionally, the company must have enough publicly available shares and shareholders.
Semler’s stock price has nearly tripled since it first disclosed its bitcoin purchases on May 28, reaching more than $74 per share as of Monday’s close. With a market capitalization exceeding $600 million, the stock rose by 5% in premarket trading on Tuesday to $78.20.
Recently, Semler filed a second prospectus supplement under its S-3 Shelf, which included an additional $50 million in share offerings through its at-the-market (ATM) program, raising the total offering to $150 million. To date, the company has raised about $100 million through this issuance.
Semler has acquired 2,084 bitcoin for $168.6 million, averaging $81,000 per coin. With the current price of bitcoin at roughly $106,500, the value of Semler’s holdings has risen to about $222 million.
The company may be aiming to replicate the success of major bitcoin holder MicroStrategy (MSTR), which has raised capital through the issuance of convertible notes to fund further bitcoin acquisitions. This method helps avoid immediate dilution of shares, making it an attractive way to raise cash. Semler’s growing options market could provide investors with a means to hedge their positions, potentially making the company’s convertible offerings more appealing to prospective buyers.
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