Sequans Raises 384 Million Dollars to Build Bitcoin Treasury

Sequans Communications, a top maker and seller of 5G and 4G IoT semiconductors and modules, has raised $384 million through private placement offerings.

This is just over 15 days after the company said it would start a Bitcoin treasury program along with its main semiconductor IoT business. Sequans sold about $195 million in equity securities and $189 million in convertible debentures to get more money for the investment.

According to the official release, more than 40 institutional investors took part in the offering. Northland Capital Markets and B. Riley Securities were the joint lead placement agents.

This is a big step forward for Sequans as they move into digital assets, especially Bitcoin. And to reach that goal, it is working with Swan Bitcoin. The company plans to use all of the $384 million in net proceeds to buy Bitcoin, changing the way it keeps its money from cash to Bitcoin.

“Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment,” says Sequans CEO Georges Karam, adding, “We believe bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders.”

It doesn’t look like the investment is a one-time thing either. The business wants to slowly build up its Bitcoin holdings over time. This move puts all of your money into one digital asset, which is a risky thing to do. And the outcome could go either way. But the company seems to be in a strong position because it believes in Bitcoin’s long-term potential.

Also read: Could Ethereum Overtake Bitcoin by Mid-August? Analyst Raises Eyebrows with Bold Prediction