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Analyst says Zoom urged to buy $305M in Bitcoin

Analyst says Zoom urged to buy $305M in Bitcoin

GrafaGrafa2025/02/14 09:30
By:Mahathir Bayena

Eric Semler, Chairman of Semler Scientific, is urging Zoom Communications to adopt a Bitcoin (CRYPTO:BTC) treasury strategy, suggesting it could revitalise the company's stock performance.

Semler proposes that Zoom allocate a portion of its $7.7 billion cash reserves to Bitcoin.

According to Semler, Zoom is a "Zombie Zone" company due to its sluggish growth and underperforming stock.

Semler's analysis reveals that Zoom's shares have declined approximately 40% over the past three years, significantly underperforming the S&P 500.

Despite strong profitability with roughly 40% EBITDA margins and $458 million in cash generated last quarter, Zoom's valuation remains low due to stagnant revenue growth.

Semler highlights his own company's success following a similar strategy.

Semler Scientific accumulated 3,192 BTC worth $305 million, which has more than doubled its stock price since the company disclosed its first token purchases in mid-2024.

Semler believes Zoom could become one of the largest corporate Bitcoin holders, leveraging its $2 billion in annualised free cash flow and access to low-cost debt.

He notes that Zoom founder and CEO Eric Yuan has the authority to implement this strategy due to his super-voting shares, although Yuan has not publicly expressed his views on Bitcoin.

Other companies like MicroStrategy and Tesla have previously invested in Bitcoin as a treasury asset.

Semler Scientific studied MicroStrategy's success before adopting its Bitcoin strategy.

As of February 13, 2025, Semler Scientific has accumulated 3,192 BTC worth $305 million.

At the time of reporting, the Bitcoin (BTC) price was $96,682.16.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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