Semler Scientific® Announces CardioVanta™, a New Entity that Seeks to Unlock Value of Future Medical Business Opportunities

Rhea-AI Summary

Semler Scientific (Nasdaq: SMLR) has announced the formation of CardioVanta, Inc., a wholly-owned subsidiary focused on heart failure detection and cardiac arrhythmia monitoring. The new entity will operate as a software-as-a-service (SAAS) business model and seek external capital investment.

CardioVanta will target multibillion-dollar markets in cardiac care, addressing a significant healthcare challenge that affects over 6 million Americans and costs the U.S. healthcare system more than $30 billion annually. Meanwhile, Semler Scientific will continue marketing its QuantoFlo® device for peripheral artery disease detection while maintaining its position as the second U.S. public company to adopt Bitcoin as its primary treasury reserve asset.

Positive

• Formation of CardioVanta targets multibillion-dollar cardiac monitoring markets
• High-margin SAAS business model for the new subsidiary
• Access to external capital funding through the new entity structure
• Strategic expansion into heart failure and cardiac arrhythmia monitoring while maintaining existing business

Negative

• Additional capital requirements needed for the new venture
• Potential risk from Bitcoin treasury strategy
• Operational complexity from managing dual business focuses (healthcare and Bitcoin)

Insights

Healthcare & Technology Investment Strategist

Semler Scientific's new CardioVanta subsidiary aims to unlock value by targeting billion-dollar cardiac monitoring markets while maintaining its Bitcoin treasury strategy.

Semler Scientific's formation of CardioVanta represents a strategic business restructuring that creates a dedicated entity for cardiac-focused healthcare solutions. This wholly-owned subsidiary will specifically target early heart failure detection and cardiac arrhythmia monitoring using a software-as-a-service (SaaS) model, which typically offers higher margins and recurring revenue compared to hardware-only solutions.

The company is pursuing a dual-track strategy here. CardioVanta will seek external capital to validate its standalone value proposition while developing solutions for cardiac care, while the parent company continues its focus on peripheral artery disease detection with its QuantoFlo product line. This structure potentially creates two value streams - the established PAD business and the new cardiac monitoring opportunities.

The addressable market opportunity is substantial. Heart failure affects over 6 million Americans with associated costs exceeding $30 billion annually. The cardiac monitoring market is projected for significant growth driven by multiple factors: increasing cardiovascular disease prevalence, artificial intelligence integration, demographic aging trends, and broader adoption of remote monitoring solutions.

What's particularly interesting is Semler's continued emphasis on its Bitcoin treasury strategy alongside healthcare innovation. The company was the second U.S. public company to adopt Bitcoin as its primary reserve asset, and management explicitly connects this financial approach with their healthcare mission through principles of "sustainability, transparency, and autonomy."

This subsidiary formation suggests management believes their cardiac monitoring initiatives warrant a separate business structure to potentially attract targeted investment and establish clearer valuation metrics for this segment. The SaaS model, if successful, could provide more predictable revenue streams compared to device-only sales approaches.

CAMPBELL, Calif., June 24, 2025 /PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), the second U.S. public company to adopt Bitcoin as its primary treasury reserve asset and a leader in medical device and software to combat chronic diseases, announced that it has formed CardioVanta, Inc., a wholly-owned subsidiary that will comprise its future healthcare business activities focused on early detection of heart failure and cardiac arrythmia monitoring. CardioVanta will be structured as a high-margin, software-as-a-service (SAAS) business model.  It will seek capital from outside investors to validate its long-term value and fund its relatively modest initial capital needs.  The markets for early detection of heart failure and cardiac arrythmia monitoring are estimated in the multibillion-dollar range and are projected to grow substantially due to rising cardiovascular disease, technology advancements such as artificial intelligence, the aging population, and increasing adoption of wearable and remote monitoring solutions.  According to the Centers for Disease Control and Prevention, heart failure affects more than six million Americans and costs the U.S. healthcare system more than $30 billion annually.  While CardioVanta will focus on cardiac technology and care systems, Semler Scientific will continue marketing its QuantoFlo® device and software for early detection of peripheral artery disease.  

"This exciting strategic plan aims to enhance our ability to combat chronic diseases, save more lives, and increase our Bitcoin holdings," said Eric Semler, chairman of Semler Scientific. "It represents a major opportunity for us to drive stockholder value and establish Semler Scientific as a dual-pronged powerhouse in the Bitcoin and medical technology sectors." 

"This announcement today advances our long-term mission to empower individuals with both monetary freedom and cutting-edge healthcare solutions that improve access to early, preventative care," added Doug Murphy-Chutorian, chief executive officer of Semler Scientific. "We view Bitcoin not merely as a treasury asset, but as a representation of the same core principles that drive our medical mission: sustainability, transparency, and autonomy."

About Semler Scientific, Inc.:

Semler Scientific, Inc. is the second U.S. public company to adopt Bitcoin as its primary treasury reserve asset and is a leader in medical devices and software to combat chronic diseases.  By using proceeds from equity and debt financings, as well as cash flows from operations, Semler Scientific intends to strategically accumulate Bitcoin. In addition, through its healthcare businesses, Semler Scientific and its wholly-owned subsidiary, CardioVanta, Inc. develop and market products and services for early detection and monitoring of chronic diseases. Semler Scientific's flagship product, QuantaFlo, which is patented and cleared by the U.S. Food and Drug Administration (FDA), provides rapid point-of-care testing to measure arterial blood flow in the extremities. The QuantaFlo test aids in the diagnosis of peripheral arterial disease. Additional information about Semler Scientific can be found at www.semlerscientific.com.

Forward-Looking Statements

This press release contains "forward-looking" statements. Such statements can be identified by, among other things, the use of forward-looking language such as the words "believe," "goal," "may," "will," "intend," "expect," "anticipate," "estimate," "project," "would," "could" or words with similar meaning or the negatives of these terms or by the discussion of strategy or intentions. The forward-looking statements in this release include express or implied statements regarding CardioVanta's future business activities and value; obtaining investment in CardioVanta and its capital needs; acquiring and holding Bitcoin; sales of securities under equity offerings and other financings to support additional Bitcoin purchases; and its cash flows from operations, among others. Such forward-looking statements are subject to a number of risks and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, such as risks inherent with obtaining FDA clearance for additional indications; conducting certain healthcare operations through CardioVanta and bringing in new investors; investing in Bitcoin, including Bitcoin's volatility; risk of implementing a Bitcoin treasury strategy; risks related to raising capital and generating sufficient cash to acquire Bitcoin; risks related to Semler Scientific's indebtedness, and risks related to Semler Scientific's proposed settlement with the Department of Justice; along with those other risk factors detailed in Semler Scientific's filings with the Securities and Exchange Commission. These forward-looking statements involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this press release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.

No Offer or Solicitation

This press release does not and shall not constitute an offer to sell or a solicitation of an offer to buy any securities of Semler Scientific, Inc. or CardioVanta, Inc., nor shall there be any offer, solicitation or sale of such securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

INVESTOR CONTACT:

Renae Cormier
Chief Financial Officer
ir@semlerscientific.com

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SOURCE Semler Scientific, Inc.

FAQ

What is CardioVanta and what will it do for Semler Scientific (SMLR)?

CardioVanta is a new wholly-owned subsidiary of Semler Scientific that will focus on early detection of heart failure and cardiac arrhythmia monitoring using a SAAS business model.

How big is the market opportunity for CardioVanta's services?

The markets for early heart failure detection and cardiac arrhythmia monitoring are estimated in the multibillion-dollar range, with over 6 million Americans affected by heart failure, costing the U.S. healthcare system more than $30 billion annually.

What is Semler Scientific's (SMLR) business strategy after creating CardioVanta?

Semler Scientific will maintain a dual focus: continuing its QuantoFlo® device business for peripheral artery disease detection while developing CardioVanta as a separate entity for cardiac monitoring services.

How will CardioVanta be funded?

CardioVanta will seek capital from outside investors to validate its long-term value and fund its initial capital needs.

What is Semler Scientific's (SMLR) relationship with Bitcoin?

Semler Scientific is the second U.S. public company to adopt Bitcoin as its primary treasury reserve asset, integrating both healthcare solutions and Bitcoin holdings in its business strategy.