according to the information portal - By Cointelegraph
Sequans Communications, a developer of semiconductors and IoT modules, has revealed plans to raise $384 million to finance its Bitcoin treasury strategy. This move comes amid a growing number of companies betting on Bitcoin (BTC) and using the world's largest cryptocurrency as a reserve asset.
According to the company, it plans to issue and sell about $195 million in shares and $189 million in convertible bonds, which can subsequently be converted into shares. For this project, Sequans is collaborating with Swan Bitcoin, a provider of BTC treasury management services.
"Our Bitcoin treasury strategy reflects our strong belief that Bitcoin is the main asset and an attractive long-term investment," said Sequans CEO Georges Karam in his statement.
Sequans is part of a growing trend of companies adding Bitcoin to their treasuries. On Saturday, Nakamoto Holdings raised $51.5 million in fresh capital to increase its Bitcoin holdings. On Monday, Metaplanet announced the addition of 1111 BTC to its treasury, bringing its total to just 400 less than Tesla.
Adam Back, CEO of Blockstream and an early cypherpunk, wrote on X that companies creating Bitcoin treasury bonds have initiated a new kind of alternative currency season. "It's time to swap ALT for BTC or BTC treasury bonds," he said.
According to BitcoinTreasuries.NET, as of Monday, about 240 companies hold BTC on their balance sheets, which is almost 100% more than just a few weeks ago. Together, these companies control about 4% of the total Bitcoin supply.
Despite the growing interest, several large companies, including Amazon, Meta, and Microsoft, have decided not to add Bitcoin to their treasury bonds. General concerns include the high volatility of the cryptocurrency and ongoing regulatory uncertainty. Corporate treasuries are typically meant for capital preservation, while allocating funds to Bitcoin can expose shareholders to significant market speculation.
Michael Saylor's Strategy remains the largest corporate holder of Bitcoins. The company owns 592,345 Bitcoins worth about $60.2 billion at the time of this writing. Strategy aggressively accumulates Bitcoins, often issuing large volumes of convertible bonds to secure the cryptocurrency.
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