Sequans Communications, a France-based developer of 5G and IoT semiconductor know-how, has introduced a transfer into Bitcoin with a brand new treasury initiative backed by a $384 million non-public placement.
The funding consists of $195 million in fairness securities and $189 million in convertible secured notes. Sequans plans to allocate this capital towards constructing a Bitcoin place alongside its core IoT operations.
“Our Bitcoin treasury technique displays our sturdy conviction in Bitcoin as a premier asset and a compelling long-term funding,” mentioned Georges Karam, CEO of Sequans. “We consider Bitcoin’s distinctive traits will improve our monetary resilience and ship vital worth to our shareholders.”
To information its treasury technique, Sequans is partnering with Swan Bitcoin, a U.S.-based agency specializing in Bitcoin custody, institutional liquidity, and funding technique. Swan will assist the corporate navigate the operational and safety elements of Bitcoin acquisition and storage.
Throughout the brand new initiative, Karam emphasised that Sequans stays dedicated to its main mission. “We proceed to assist our clients with a sturdy 4G and 5G product roadmap, delivering revolutionary options to satisfy evolving IoT utility wants and guaranteeing a seamless transition from 4G to 5G,” he mentioned.
Sequans will challenge over 1.39 billion odd shares and warrants within the fairness providing and extra warrants tied to the debt placement. The providing is anticipated to shut by July 1, pending shareholder approval at a June 30 assembly.
Placement brokers embody Northland Capital Markets, B. Riley Securities, and Yorkville Securities. Authorized counsel consists of Lowenstein Sandler LLP (U.S.) and ARCHERS (France) for Sequans, and Goodwin Procter LLP for the brokers.
The transfer aligns Sequans with a rising development of public corporations leveraging Bitcoin as a treasury asset—a technique popularized by companies like Technique and Semler Scientific. Sequans presently holds a market cap of round $40 million. Its shares dropped 12% to $1.62 in Monday buying and selling following the announcement.
