Eric Semler, Chair of Semler Scientific, is urging Zoom Communications to allocate its $7.7 billion cash reserves into Bitcoin, arguing that the move could enhance shareholder value and drive company growth.
In a recent post on X, Semler highlighted his firm’s success with a similar strategy, having accumulated 3,192 BTC—currently valued at $305 million—which helped double Semler Scientific’s stock price over the past year.
Labeling Zoom a “Zombie Zone” company, Semler pointed to its disappointing market performance. Over the last three years, Zoom’s stock has fallen by approximately 40%, underperforming the S&P 500 by around 73%. In the past five years, the company has lagged behind the S&P by roughly 84%. Despite having a forward earnings multiple of 15x and an EBITDA multiple of 9x, Zoom continues to struggle with stagnating growth.
Zoom currently holds $7.7 billion in cash—nearly one-third of its $25 billion market cap—without a clear strategy for its utilization. Despite strong profitability, boasting ~40% EBITDA margins and generating $458 million in cash last quarter, its revenue growth projections remain low, hovering in the single digits.
Semler argues that adopting a Bitcoin treasury strategy could position Zoom as one of the largest corporate Bitcoin holders. With $2 billion in annualized free cash flow and access to low-cost debt, the company has the financial means to execute such a plan.
He also emphasized that Zoom’s founder and CEO, Eric Yuan—who holds super-voting shares—has the authority to implement this strategy. However, Yuan has not publicly commented on Bitcoin or its potential role in Zoom’s financial strategy.