Semler Scientific (SMLR), the medical device company that adopted a bitcoin treasury strategy earlier this year, has now been granted approval for options trading on its shares. This comes after a period of significant share price growth, largely driven by the company’s move into bitcoin (BTC) and its subsequent capital-raising efforts.

On December 5, Semler submitted a request to options exchanges for approval to allow options trading, believing that it met the necessary criteria. While no official announcement has yet been made, brokerage platforms revealed on Tuesday morning that options for Semler’s stock are now available for trading.

Options trading offers investors the right, but not the obligation, to buy or sell a stock at a predetermined price within a set timeframe. The introduction of options on a stock provides traders with additional tools for managing risk and capitalizing on price movements.

To be eligible for options trading, stocks must meet specific requirements such as a minimum share price of $3-$5, a market capitalization of at least $75 million, and a daily trading volume of between 500,000 to 1 million shares. Additionally, the company must have a sufficient number of shareholders and publicly available shares.

Since publicly announcing its initial bitcoin purchases on May 28, Semler’s stock price has nearly tripled, reaching over $74 as of Monday’s close. With a market cap now surpassing $600 million, the stock saw a 5% increase in premarket trading on Tuesday, reaching $78.20.

Semler has also filed a second prospectus supplement under its S-3 Shelf, raising an additional $50 million through its existing at-the-market (ATM) program, bringing the total offering to $150 million. The company has already raised approximately $100 million through this program.

To date, Semler has acquired 2,084 bitcoins for a total of $168.6 million, at an average purchase price of about $81,000 per coin. Given bitcoin’s current value of $106,500, Semler’s holdings are now worth around $222 million.

The company may be looking to replicate the success of MicroStrategy (MSTR), which has utilized convertible notes to raise capital for additional bitcoin acquisitions. By offering convertible notes, MicroStrategy has avoided immediate share dilution, making the offering more attractive to investors. Semler’s growing options market could help it achieve similar success by providing more hedging opportunities, thereby enhancing the appeal of its convertible offerings to potential buyers.

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