Zoom’s Bitcoin Bonanza: A Recipe for Success or a Recipe for Disaster?

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Zoom’s Bitcoin Bonanza: A Recipe for Success or a Recipe for Disaster?
Zoom’s Bitcoin Bonanza: A Recipe for Success or a Recipe for Disaster?

What to know:

  • Zoom Communications (ZM) could shake up sluggish growth and stock performance by adopting a bitcoin strategy, Semler Scientific (SMLR) Chairman Eric Semler said.
  • The tech firm is has ample cash in its treasury sitting idle, and would quickly become one of the largest corporate BTC holders, Semler added.
  • Semler Scientific accumulated 3,192 BTC worth $305 million since it adopted a BTC treasury strategy last year and its stock price has more than doubled.

My dear friends, it appears that Zoom Communications, that erstwhile darling of the pandemic era, has found itself stuck in a rut, much like a carriage without a horse. And so, the inimitable Eric Semler, Chairman of Semler Scientific, has proposed a most intriguing solution: embracing the wild and woolly world of bitcoin.

“Ah, Zoom,” Semler exclaimed in an X post, “once a pandemic darling, now a mere shadow of its former self, stuck in a highly competitive, slow-growth market. But fear not, dear friends, for with its $7.7 billion cash pile, $2 billion in annualized free cash flow, and ready access to low-cost debt, Zoom could rapidly become one of the largest corporate holders of Bitcoin. It’s a veritable treasure trove of possibilities, don’t you agree?”

And, one might add, a rather bold move, considering Zoom shares are down about 85% from their 2020 peak, while the Nasdaq and S&P 500 continue to soar to new heights. But, as the saying goes, “when life gives you lemons, make lemonade.” Or, in this case, when life gives you a stagnant stock price, invest in bitcoin and hope for the best.

Now, I must confess that Semler’s comments are not entirely without merit. His company, Semler Scientific, has indeed adopted a BTC treasury strategy with great success, accumulating 3,192 BTC worth a rather impressive $305 million. And, as an added bonus, the stock price has more than doubled since the company disclosed its first bitcoin purchases in mid-2024. Ah, the sweet taste of success!

But, my dear friends, let us not be too hasty in our enthusiasm. As Semler himself notes, his company’s stock price has struggled in recent weeks alongside bitcoin’s poor price performance. Ah, the perils of investing in the wild and woolly world of cryptocurrency! šŸ¤Æ

And so, dear readers, we are left to ponder the wisdom of Eric Semler’s words: “Zoom Communications, said Semler, is ‘Zombie Zone’ company number one, and he promises more such picks in the future.” Ah, the thrill of the unknown, the agony of defeat, and the ecstasy of victory! šŸŽ‰

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2025-02-13 21:17