Medical technology firm Semler Scientific has reached a settlement with the US Department of Justice (DOJ), agreeing in principle to pay $29.75 million to resolve allegations linked to potential violations of the federal False Claims Act. Apparently, the payment could possibly be made using Bitcoin-backed loan.
The charges are from the marketing of its main product, QuantaFlo. The company revealed last month that it had been under investigation since receiving a civil investigative demand from the DOJ in 2017. According to recent filings with the US Securities and Exchange Commission (SEC), Semler has cooperated throughout several years of follow-up inquiries, leading to the start of settlement talks in February.
Semler-DOJ Settlement: An Instance of Bitcoin Backed Loan Payment?
To cover the potential fine, Semler may tap into its substantial Bitcoin holdings. In a Form 8-K filing on Tuesday, the company disclosed it had struck a deal with crypto exchange Coinbase, allowing it to borrow funds, both in cash and crypto, using its Bitcoin as collateral. If the DOJ settlement is finalized, Semler plans to draw from this loan alternative combined with existing cash reserves, to fulfill the payment. Currently, Semler holds 3,192 Bitcoins, valued at around $267 million. If the loan is used, it would mark as one of the first known cases of a publicly traded company using Bitcoin-backed financing to settle a government enforcement action.
With regulations seemingly relaxing, Semler is gearing up to resume its Bitcoin accumulation. Chairman Eric Semler signaled the company’s renewed buying interest on social media, tweeting: “Excited to buy more bitcoin.”
In a similar move, Semler launched a $500 million at-the-market mixed securities shelf offering Tuesday evening. The proceeds are expected to support additional Bitcoin purchases.
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