Sequans secured $384M from over 40 institutional investors to launch a Bitcoin treasury and boost long-term financial resilience.
The firm will use all proceeds from ADS sales and convertible debentures to purchase Bitcoin and expand its digital asset strategy.
Sequans partnered with Swan Bitcoin for secure execution and transparency as it shifts surplus cash from IoT operations into Bitcoin.
Sequans Communications has closed a $384 million funding round to begin its Bitcoin treasury strategy. The Paris-based semiconductor firm secured the capital through private placements involving debt and equity instruments. More than 40 institutional investors participated in the round. The company plans to use all net proceeds to purchase Bitcoin and for related corporate activities.
This move signals Sequans’ bold entry into digital assets. The firm, known for 5G/4G IoT chips and modules, aims to diversify its financial base using Bitcoin. Georges Karam, Sequans' CEO, confirmed this pivot. He stated the strategy will boost financial resilience and long-term shareholder value. The company will also keep buying Bitcoin extra cash from its IoT operations.
Details of the Funding Deal
The offering included 139.4 million American Depositary Shares (ADSs), each representing 10 ordinary shares. The combined sale of ADSs and common warrants raised $195 million. Additionally, Sequans issued $189 million in secured convertible debentures, due July 2028. These bonds carried a 4% original issue discount.
Besides, the debentures are convertible into ordinary shares at $2.10 per ADS. The attached warrants are exercisable within 90 days. If all common warrants are exercised, the firm may raise an extra $57.6 million. All these funds will support the Bitcoin accumulation plan.
Strategic Partners and Compliance
To execute its strategy securely, Sequans will partner with Swan Bitcoin. Swan will offer custody, market execution, and compliance services. Consequently, the company aims to ensure governance and transparency throughout its crypto expansion.
Moreover, Northland Capital Markets and B. Riley Securities led the placement efforts. Yorkville Securities also supported the process. Legal advisors included Lowenstein Sandler LLP, ARCHERS AARPI, and Goodwin Procter LLP.
The offering was structured under exemptions from U.S. securities registration rules. Hence, the securities were sold via private placements. Sequans has agreed to file resale registration statements for investor protection.
Sequans, listed on NYSE under the ticker SQNS, has been a key player in IoT since 2003. With operations across 10 countries, the firm designs wireless chips and modules optimized for efficiency and performance.
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