Sequans Launches $384M Bitcoin Treasury Initiative With Swan Bitcoin Partnership

Sequans Communications, a leading developer of 5G and IoT semiconductor technology based in France, has recently made a significant foray into the world of Bitcoin with the launch of a new treasury initiative supported by a substantial $384 million private placement.

The funding for this initiative comprises $195 million in equity securities and $189 million in convertible secured notes. Sequans intends to utilize this capital to establish a Bitcoin position in addition to its core IoT operations.

Georges Karam, the CEO of Sequans, expressed the company’s strong belief in Bitcoin as a premier asset and a compelling long-term investment. He stated, “Our Bitcoin treasury strategy reflects our strong conviction in Bitcoin as a premier asset and a compelling long-term investment. We believe Bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders.”

To assist in navigating the complexities of Bitcoin acquisition and storage, Sequans has partnered with Swan Bitcoin, a reputable U.S.-based firm specializing in Bitcoin custody, institutional liquidity, and investment strategy.

Karam emphasized that despite this new initiative, Sequans remains steadfast in its commitment to its primary mission of supporting customers with innovative 4G and 5G solutions for evolving IoT applications.

In the equity offering, Sequans will issue over 1.39 billion ordinary shares and warrants, with additional warrants tied to the debt placement. The closing of the offering is anticipated by July 1, pending shareholder approval at a meeting scheduled for June 30.

Leading the placement are Northland Capital Markets, B. Riley Securities, and Yorkville Securities, with legal counsel provided by Lowenstein Sandler LLP (U.S.) and ARCHERS (France) for Sequans, and Goodwin Procter LLP representing the agents.

This strategic move aligns Sequans with a growing trend among public companies that are increasingly turning to Bitcoin as a treasury asset, following the lead of firms like Strategy and Semler Scientific. Despite the announcement, Sequans’ shares experienced a 12% drop to $1.62 in Monday trading, with the company currently holding a market cap of approximately $40 million.