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Sequans Communications, a France-based creator of 5G and IoT semiconductor technology, has declared an entry into Bitcoin through a new treasury initiative supported by a $384 million private fundraising.
The investment encompasses $195 million in equity instruments and $189 million in convertible secured notes. Sequans intends to direct this capital toward establishing a Bitcoin position alongside its fundamental IoT operations.
“Our Bitcoin treasury plan reflects our strong belief in Bitcoin as a leading asset and an attractive long-term investment,” stated Georges Karam, CEO of Sequans. “We are confident that Bitcoin’s distinctive traits will bolster our financial stability and provide substantial value to our investors.”
To steer its treasury approach, Sequans is collaborating with Swan Bitcoin, a U.S.-based company specializing in Bitcoin custody, institutional liquidity, and investment strategies. Swan will assist the firm in managing the operational and security elements of Bitcoin acquisition and storage.
Throughout the new initiative, Karam underscored that Sequans remains dedicated to its primary objectives. “We continue to support our clientele with a comprehensive 4G and 5G product roadmap, providing innovative solutions to address the changing IoT application requirements and ensuring a smooth transition from 4G to 5G,” he noted.
Sequans will issue over 1.39 billion common shares and warrants as part of the equity offering, along with additional warrants linked to the debt placement. The offering is projected to conclude by July 1, pending shareholder approval at a meeting on June 30.
Placement agents encompass Northland Capital Markets, B. Riley Securities, and Yorkville Securities. Legal advisors include Lowenstein Sandler LLP (U.S.) and ARCHERS (France) for Sequans, and Goodwin Procter LLP for the agents.
This initiative positions Sequans within a rising trend of public companies utilizing Bitcoin as a treasury asset—a strategy endorsed by firms like Strategy and Semler Scientific. Sequans currently boasts a market capitalization of around $40 million. Its shares fell 12% to $1.62 in Monday trading after the announcement.
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