Eric Seemler, president of the Seveler Scientific, has called Zoom Communications to allocate the bitcoin to its $ 7.7 billion cash reserves, arguing that it could run the development and shareholder value.
As X postSemaller cited a similar strategy citing the success of his firm, with a price of 3,192 BTC $ 305 million, which helped double the price of his share since last year.
Seleler labeled the zombie to a “zombie zone” company, which points to its market performance. Over the last three years, zoom shares have declined by about 40%, which is reducing S&P 500 by about 73%.
In the last five years, Zoom has increased the S&P by about 84%. Despite further earnings, despite many of the 15x and forward Ebitda 9X, Semler said that the zoom evaluation is low due to the steady increase.
Zoom has $ 7.7 billion in cash, which has about one-third of its $ 25 billion market cap, with no clear plan for deployment. The company also maintains strong profitability, ~ 40% of Ebitda margin and $ 458 million in cash generated in the previous quarter.
However, its revenue growth approach remains weak, with estimates in low single digits.
Seleler argued that by adopting a bitcoin treasury strategy, the zoom can be converted into one of the largest corporate bitcoin (BTC) holders, which avails $ 2 billion in annual free cash flow and access to low cost loans Is.
He emphasized that Eric Yuan, founder and CEO of Zoom, who has super-voting shares, has the power to implement this strategy, even though Yuan has not publicly commented on bitcoin.
