Sequans Communications, a France-based wireless chipmaker, saw its shares soar 35% following the announcement of a $384 million private capital raise aimed at significantly increasing its Bitcoin (BTC) treasury holdings.
Bitcoin Treasury Strategy Gains Momentum
In a bold strategic pivot, Sequans will allocate the majority of the funds raised toward Bitcoin, positioning the digital asset as a core treasury reserve. The funding round included a mix of American Depositary Shares (ADS), warrants, and convertible debentures, reflecting a diversified financing approach to support the move.
This decision marks Sequans’ official entry into the growing circle of public companies leveraging Bitcoin as a hedge and long-term store of value.
Details of the Capital Raise
According to the company’s statement:
- $195 million was raised through the sale of ADS and warrants at $1.40 per share.
- An additional $189 million was secured through five-year convertible debentures, issued at a 4% discount.
- The conversion price is set at $2.10 per ADS.
- If all warrants are exercised, Sequans could generate a further $57.6 million, also designated for Bitcoin investment.
As a result of the announcement, Sequans’ ADS climbed to $2.01 on the Nasdaq, posting its strongest session in months.
Custody and Execution Partners
Sequans has partnered with Swan Bitcoin for sourcing and custody of its BTC holdings. The financing process was managed by Northland Capital Markets and B. Riley Securities, providing institutional credibility to the company’s transition into digital assets.
Aligning with Industry Leaders in Bitcoin Adoption
Sequans now joins a wave of publicly traded firms that are integrating Bitcoin into their financial strategy. As of today, 852,309 BTC are held by public corporations, according to treasury data.
Key players include:
- Strategy (MSTR) with 597,325 BTC
- MARA Holdings with 50,000 BTC
- XXI holding 37,230 BTC
Sequans’ leadership believes Bitcoin will boost financial resilience and serve as a long-term value creation asset amid uncertain economic conditions.
Future Outlook
With its core business focused on low-power 4G and 5G modem technology for smart devices and industrial applications, Sequans is now charting a parallel path of financial innovation. The shift toward Bitcoin as a primary reserve asset reflects growing corporate confidence in digital currencies amid inflation and macroeconomic shifts.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.