Publicly-traded French semiconductor firm Sequans Communications has raised $384 million to launch its first-ever Bitcoin treasury, signaling a major shift in corporate financial strategy. This ambitious plan positions Sequans among a growing wave of companies embracing virtual assets as a reserve asset.
Sequan Ventures into Bitcoin
The firm secured the funds through a dual-tranche private placement, comprising $195 million from selling 139.4 million American Depositary Shares at $1.40 each, plus warrants, and $189 million in secured convertible debentures maturing in July 2028, with a conversion price of $2.10 per ADS.
This investment marks Sequans’ first acquisition of Bitcoin, strongly projecting its core activities within the 5G and 4G IoT semiconductor sectors. In the official press release, the firm’s CEO, Georges Karam, expressed the firm’s readiness to delve deep into its Bitcoin treasury plan.
“With the closing of this financing, we are excited to begin executing our bitcoin treasury strategy. We believe bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders. Our intention is to continue acquiring bitcoin in the future, using excess cash generated from our core business operations and additional proceeds,” he said.
Why Sequans Chose Bitcoin
Karam expressed a strong conviction in Bitcoin as an important long-term investment, citing its potential to hedge against inflation and currency devaluation. The decision reflects Sequans’ belief that Bitcoin’s unique nature will enhance financial resilience and deliver shareholder value.
Amid growing crypto market dynamics, the company sees Bitcoin as a strategic asset to strengthen its balance sheet, especially given its bullish movement, trading currently at $108,720. The move aligns with a broader corporate trend of adopting cryptocurrency to diversify assets and capitalize on its growth potential.
Sequans may have likely seen others join a surge of companies adding Bitcoin to their treasuries, following the lead of Saylor’s Strategy, which currently holds 597,325 BTC acquired through debt and equity. Semler Scientific has also embraced Bitcoin as a reserve asset, mirroring Sequans’ strategy.
Meanwhile, earlier today, UK-based real estate firm Murano Global Investments announced its plan to establish a Bitcoin treasury with a $500 million backing. The company has taken a significant step into the crypto space, purchasing Bitcoin. These firms reflect a broader trend, with approximately 240 companies now holding Bitcoin, nearly doubling from 124 in recent weeks.
