Executives from Metaplanet and Semler Scientific revealed that their companies, once considered “zombie” firms, transformed their fortunes by adopting MicroStrategy’s Bitcoin strategy.
At the Bitcoin Conference in Nashville on July 25, Semler Scientific’s chairman, Eric Semsler, shared that the company was inspired by Michael Saylor’s discussions about zombie companies. Semsler acknowledged that despite being cash-rich, the company struggled with stagnant stock performance.
Semler decided to invest in Bitcoin as a strategic use of their capital, a move that has led to a 40% increase in their share price since their initial Bitcoin purchase on May 28. Despite a current 3.6% decline on their Bitcoin investment, the decision has had a significant positive impact on their stock performance.
Metaplanet’s CEO Simon Gerovich admitted that his company was nearing “zombie” status before it embraced Bitcoin. Gerovich recounted downsizing staff and paying off debt while struggling to find a viable business model.
However, Metaplanet shifted its focus to Bitcoin, seeing it as a way to enhance its balance sheet and hedge against the depreciating Japanese yen. Gerovich emphasized Bitcoin’s value as the “apex monetary asset” and committed to increasing their Bitcoin holdings.
Since their first Bitcoin purchase on April 23, Metaplanet’s stock has skyrocketed by 980%, though the investment is slightly down. Both Metaplanet and Semler Scientific, which also experienced a 40% increase in its stock price since investing in Bitcoin, are adapting to Bitcoin’s volatility.
Semler expressed optimism about the liquidity boost potentially leading to options trading for their stock, while Gerovich looks forward to offering a convert issuance for Metaplanet.
Gerovich credited MicroStrategy and its chairman, Michael Saylor, for making their transition smoother.
“MicroStrategy has paved the way over the past four years, and their work has been very inspiring. Without their efforts, it would be much harder for corporations worldwide to adopt Bitcoin now,” Gerovich said.