Nasdaq listed in Zoom Communications (ZM), a stock market high-flyer during the pandemic boom faced more difficult times ever since, should embrace a Bitcoin (BTC) approach to shake the sluggish stock performace and provide Value to shareholders, says Eric Semler, chairman of firm Medical Semler Semler (SMLR) firm.
“When a pandemic darling, the zoom is now stuck in a highly competitive, slow market growth,” Semler said in a X post Thursday. “By seizing $ 7.7 billion cash pile, $ 2 billion in annual free cash flow, and ready access to low debt costs, Zoom can quickly become one of the largest corporate holders of Bitcoin, ”
Zoom shares dropped about 85% from their 2020 peak even though Nasdaq and S&P 500 continued to push new record highs.
Semler’s comments came from experience as his company adopted a BTC Treasury approach last year after studying the example of Michael Saylor’s (MSTR) strategy, formerly known as Microstrategy, how to provide a amount for company shareholders. Semler since converting most of its cash holdings to Bitcoin and tapped capital markets for more cash where tokens can be available. As the latest update, it accumulated 3,192 BTC, worth $ 305 million in current prices.
Although SMLR shares have been struggling in recent weeks next to the poor Bitcoin price performance, the stock price has been more than double since the company disclosed the first purchase of Bitcoin in mid -2024.
Zoom Communications, Semler said, is the “Zombie Zone” number one, and he promises more picks in the future.
Read more: Semler Scientific studies Microstrategy’s success before adopting Bitcoin approach
