Semler Scientific’s shares, held by Bitcoin investors, are now tradable through options.

Semler Scientific (SMLR), a medical device company that adopted a bitcoin treasury strategy earlier this year, has officially entered the options market, with its shares now available for options trading. This milestone follows several months of growth in the company’s stock price, driven by its strategic pivot toward bitcoin (BTC) and its recent capital-raising initiatives.

On December 5, Semler submitted a request to options exchanges for approval to offer options on its shares. After meeting the required criteria, options were made available for trading, as confirmed by brokerage accounts early Tuesday. The move allows investors additional tools to manage risks and speculate on price movements in the company’s stock.

Options are contracts that give investors the right, but not the obligation, to buy or sell a stock at a predetermined price before a specified date. The introduction of options trading on Semler’s shares allows traders to hedge their positions or take advantage of potential price fluctuations.

In order to qualify for options trading, companies must meet several eligibility requirements. These include a minimum share price, a market capitalization of at least $75 million, sufficient daily trading volume, and a broad shareholder base. Semler’s stock price has risen significantly since the company disclosed its bitcoin investments on May 28. As of Monday’s close, shares had nearly tripled in value, reaching over $74 per share, and its market cap now exceeds $600 million. Semler’s shares saw a further 5% increase in premarket trading Tuesday, hitting $78.20.

Additionally, Semler has filed a second prospectus supplement under its S-3 Shelf registration, raising an additional $50 million under its existing at-the-market (ATM) program. This increases the total offering to $150 million, with approximately $100 million raised through the ATM program to date.

Semler has accumulated 2,084 bitcoins, totaling $168.6 million, at an average price of $81,000 per coin. With bitcoin trading at around $106,500, the value of Semler’s bitcoin holdings has risen to approximately $222 million.

Semler may be looking to emulate the success of MicroStrategy (MSTR), which raised capital through convertible note offerings to fund its bitcoin purchases. This strategy allowed MicroStrategy to avoid share dilution, making it an appealing method for raising capital. Semler’s recent move into the options market provides investors with hedging opportunities, which could make its future convertible offerings more attractive to potential buyers.

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