JUST IN: Publicly traded Sequans raises $384 million, Bitcoin treasury

$384 Million Raised From 40+ Investors to Back Bitcoin treasury

Sequans Communications, a Paris telecom company famous for its 4G and 5G IoT chips, has finally set foot in the crypto space, Bitcoin Treasury.  The company raised a whopping $384 million from more than 40 institutional investors, initiating a pioneering BTC Reserves. Begin acquiring and holding digital coins on its company balance sheet, indicating a long-term faith in digital assets.

How Sequans Raised $384 Million

The raising was done in two principal components:

• $195 million was raised through a PIPE (Private Investment in Public Equity). This was done by selling more than 139 million American Depositary Shares (ADSs) and warrants, which entitled investors to purchase additional shares in the future.

• The other $189 million was raised in secured convertible debentures, a form of loan that can be converted to equity in the company in the future.

This round of funding is not only big it also indicates the entry of a traditional technology firm into a sector largely controlled by crypto-native companies.

Sequans has always provided state-of-the-art connectivity via its IoT modules. However, with inflation worries on the rise and fiat currencies uncertain, Bitcoin Treasury strategy is increasingly being considered as a digital currency. The company feels that this action could assist it in safeguarding its capital, improving its balance sheet, and providing long-term value to shareholders.

Georges Karam clarified,  "Having the capital in place, we're now ready to execute our Bitcoin Treasury strategy. This is just the beginning. We plan to buy more BTC in the future, using more cash generated by our main business."

The move follows aggressive actions by firms such as MicroStrategy. Sequans is one of the first non-US technology companies to adopt such a scheme.

Market Reaction and Future Plans

Upon the announcement, Sequans' shares jumped 35%, as investors welcomed the move. The announcement is indicative of increased corporate interest in BTC as more than a speculative commodity but as an essential reserve diversification tool.

The management of the company expects that by holding Bitcoin Treasury as a store of value, it will be best positioned in an evolving financial environment. The objective isn't a short-term profit, but a strategic shift to long-term value preservation.

Is a New Bitcoin Strategy Unfolding Worldwide?

Sequans could be merely the beginning. With cryptocurrency markets gaining momentum and regulation becoming clearer in some regions of the world, other companies will likely follow. Sequans' action is a strong sign of increasing confidence in BTC Treasury as a serious financial asset by even old-school telecom companies.