Sequans Communications, a France-based developer of 5G and IoT semiconductor technology, has announced the transition to Bitcoin with a new Treasury initiative, backed by a private $384 million deployment.
The funds include $195 million in equity securities and $189 million in convertible secured bonds. Sequans plans to assign the capital to building a Bitcoin location along with core IoT operations.
“Our Bitcoin financial strategy reflects our strong belief in Bitcoin as a premier asset and a compelling long-term investment,” said Georges Karam, CEO of Sequans. “We believe that the unique characteristics of Bitcoin will increase our financial resilience and bring great value to our shareholders.”
To guide our financial strategy, Sequans partners with Swan Bitcoin, a US-based company specializing in Bitcoin custody, institutional liquidity and investment strategies. Swan helps the company navigate the Bitcoin acquisition and storage operation and security aspects.
During the new initiative, Karam emphasized that Sequans remains committed to its main mission. “We continue to support our customers with our robust 4G and 5G product roadmap, providing innovative solutions to meet the needs of evolving IoT applications, ensuring a seamless transition from 4G to 5G,” he said.
Span issues more than 13.9 billion common stock and warrants for the stock offerings and additional warrants related to the placement of obligations. The offering is scheduled to close by July 1, with shareholder approval pending at its June 30th meeting.
Placement agents include Northland Capital Market, B. Includes Riley Securities and Yorkville Securities. Legal counsels include Lowenstein Sandler LLP (USA) and Archers (France) bread, as well as agent Goodwin Procter LLP.
The move follows the growth trends of public companies that Seavan uses Bitcoin as a financial asset. This is a strategy that has become popular among companies such as Strategy and Semler Scientific. Sequans currently holds a market capitalization of approximately $40 million. The stock fell 12% to $1.62 in trading on Monday after the announcement.
Source: https://bitcoinmagazine.com/news/sequans-launches-384m-bitcoin-treasury-initiative-with-swan-bitcoin-partnership
