Sequans Communications, a fabless semiconductor firm specializing in 5G/4G IoT semiconductor know-how, has formally closed a $384 million strategic funding to kick off its Bitcoin treasury initiative. The deal combines $195 million in fairness financing and $189 million in secured convertible debentures, reflecting rising institutional urge for food for Bitcoin.
The Providing included the sale of over 139 million American Depositary Shares (ADSs), with further widespread warrants exercisable inside 90 days, contributing $195 million in gross proceeds. The $189 million in convertible debentures, due July 7, 2028, have been issued at a 4% low cost and include additional widespread warrants. If all warrants are exercised, Sequans may achieve one other $57.6 million, allotted primarily for added Bitcoin purchases.
“With the closing of this financing, we are excited to begin executing our bitcoin treasury strategy,” mentioned Georges Karam, CEO of Sequans. “We believe Bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders. Our intention is to continue acquiring Bitcoin in the future, using excess cash generated from our core business operations and additional proceeds.”
To implement this technique securely and transparently, Sequans will associate with Swan Bitcoin, a number one U.S.-based Bitcoin monetary providers agency specializing in custody, liquidity, and institutional technique.
The securities have been supplied by way of personal placement and haven’t been registered underneath the U.S. Securities Act of 1933. Northland Capital Markets and B. Riley Securities acted as joint lead placement brokers, with Yorkville Securities additionally collaborating. Authorized assist got here from Lowenstein Sandler LLP (U.S.) and ARCHERS (France) for the corporate, and Goodwin Procter LLP for the location brokers.
This announcement follows Sequans’ June 23 disclosure of its plan to boost $384 million for a Bitcoin-focused treasury technique. “Our Bitcoin treasury strategy reflects our strong conviction in Bitcoin as a premier asset and a compelling long-term investment,” Karam mentioned final month. That earlier assertion laid the groundwork for right now’s closing.
On the time, Karam additionally emphasised that the transfer into Bitcoin wouldn’t take away from Sequans’ core enterprise. “We continue to support our customers with a robust 4G and 5G product roadmap,” he mentioned, reinforcing the corporate’s ongoing deal with IoT innovation. The Bitcoin technique is designed to run in parallel—including monetary energy whereas Sequans continues constructing next-gen connectivity options.
