Butterfly Network (BFLY) Soars 31% on Midjourney’s $74M Medical Scanner Partnership

Key Takeaways

• Shares of Butterfly Network surged approximately 31% following Midjourney’s announcement of Midjourney Medical and its revolutionary Midjourney Scanner
• Each scanner prototype incorporates 40 Ultrasound-on-Chip modules from Butterfly through a co-development partnership valued at up to $74 million across five years
• TD Cowen’s Joshua Jennings highlighted that the partnership confirms Butterfly’s chip-licensing business as a viable independent revenue channel
• With plans for 5,000 spa facilities and more than 50,000 units worldwide by 2031, Midjourney’s expansion could drive substantial chip orders for Butterfly
• William Blair raised concerns about regulatory approval timelines, reimbursement pathways, and the clinical evidence supporting routine full-body ultrasound screening

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Shares of Butterfly Network (BFLY) climbed to $7.54 on Thursday, marking a roughly 31% gain, after Midjourney announced the formation of its healthcare division alongside a medical device utilizing Butterfly’s proprietary technology.

Butterfly Network, Inc., BFLY

Midjourney Medical introduced the Midjourney Scanner — a comprehensive full-body ultrasonic computational tomography system. The existing prototypes integrate 40 Ultrasound-on-Chip imaging modules from Butterfly, with plans to incorporate additional modules in subsequent iterations.

The announcement propelled BFLY shares to an intraday peak of $8.01, establishing a new 52-week high compared to the previous closing price of $5.71.

The collaboration operates through Butterfly Embedded, the division previously called Octiv that handles chip licensing and joint development initiatives. According to an SEC filing from November 2025, Butterfly expects to receive payments totaling up to $74 million throughout the five-year agreement.

Elon Musk responded to the news on X with a brief “cool,” generating additional social media buzz that sustained interest in the story during trading hours.

With short interest representing approximately 12.6% of available shares before Thursday’s session, the covering of bearish positions amplified the upward price momentum.

Wall Street’s Perspective

Joshua Jennings from TD Cowen was quick to emphasize the strategic significance. He contended that the collaboration demonstrates Butterfly’s chip technology possesses substantial value independent of its portable ultrasound products — creating opportunities for licensing income, chip sales, and shared revenue arrangements.

William Blair also provided commentary, noting that Midjourney’s ambitious deployment strategy could translate into significant long-term demand for Butterfly.

Midjourney intends to establish 5,000 specialized “Midjourney Spas,” with each location housing approximately 10 scanning devices. The inaugural facility is slated to launch in San Francisco during late 2027.

The company is simultaneously developing advanced scanner models scheduled for 2028, aiming to deploy over 50,000 devices internationally by 2031. Based on roughly 40 chips per device, William Blair characterized this projection as a meaningful growth opportunity for Butterfly’s semiconductor division.

Unanswered Questions Linger

Not all analysts express complete confidence. William Blair’s Andrew Brackmann identified several unresolved issues that could influence the outcome.

He questioned whether Midjourney can secure FDA clearance quickly enough to meet the anticipated demand trajectory. Reimbursement from insurance providers represents another obstacle — Brackmann views this as essential for realizing the market potential.

He further observed that preliminary clinical data from the scanner has yet to establish definitive benefits for preventive whole-body screening applications.

Butterfly’s leadership team, including CEO Joe DeVivo, CFO John Doherty, and SVP of Innovation David Horsley, were slated to participate in a TD Cowen Medical Devices Emerging Growth conference call at noon Eastern Time on Thursday.

The overall market environment provided additional support, with the S&P 500 advancing 0.9% and the Nasdaq gaining 1.2% during the trading session.

BFLY shares were changing hands at $7.49, representing a 31.1% increase, at publication time.

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