Saad Ullah
French semiconductor company Sequans Communications just pulled off one of the biggest corporate Bitcoin moves since MicroStrategy started the trend back in 2020. The company raised $384 million from over 40 institutional investors and plans to put almost all of it into Bitcoin (BTC).
Sequans (SQNS) Goes All-In on Bitcoin (BTC) Strategy
On July 8, Sequans Communications closed a massive $384 million private placement deal. The funding came from $195 million in equity and $189 million in convertible debt, with nearly everything going straight into Bitcoin purchases.
CEO Georges Karam isn't shy about why they're making this move. He sees Bitcoin's scarcity and staying power as way better than keeping cash sitting around. "With the closing of this financing, we are excited to begin executing our bitcoin treasury strategy," said Georges Karam, CEO of Sequans. "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."
This puts Sequans right up there with MicroStrategy in terms of Bitcoin commitment. For context, Michael Saylor's company now holds 597,325 BTC worth about $64.4 billion, sitting on a $22 billion unrealized gain from their $42.4 billion investment.
How Sequans (SQNS) Pulled Off Its Bitcoin (BTC) Pivot
What's really impressive is how fast this all happened. Sequans only announced they were considering a Bitcoin strategy in June, and by July they had $384 million locked up. That tells you investors were pretty excited about the idea.
The company hasn't named all the investors, but having regulated firms like Northland Capital Markets and B. Riley Securities involved shows traditional finance is getting comfortable with Bitcoin strategies. Yorkville Securities, who've worked with Crypto.com and Trump Media on digital asset deals, also helped close the transaction.
There's even more money potentially coming. Investors got warrants they can exercise within 90 days, which could add another $57.6 million to Sequans' war chest for more Bitcoin buying.
Sequans (SQNS) Teams Up with Swan Bitcoin for BTC Management
Sequans picked Swan Bitcoin to handle the custody and trading side of things. That's a smart move since compliance and security are huge deals when you're a public company dealing with crypto.
The timing makes sense too. Sequans' stock has been struggling - their market cap dropped below $50 million and they're in danger of getting kicked off the NYSE. This Bitcoin play, along with the cash injection, looks like their attempt to turn things around.
It's pretty wild to see another major company betting big on Bitcoin as a treasury asset. With $384 million backing this strategy, it shows Bitcoin is becoming a real option for corporate treasuries, not just something for crypto enthusiasts.
Saad Ullah
