Sequans Goes All-In on Bitcoin: $384M Raised to Fuel BTC Treasury

Holy crypto shift, Batman! Sequans Communications just ditched their boring old reserves and poured a whopping $384 million in fresh cash into Bitcoin. The CEO says BTC's "unique properties" are the secret sauce behind this wild move.

On July 8th, the French tech wizards at Sequans dropped the mic with a $384 million private placement. Over 40 institutional investors are backing this insane pivot to a Bitcoin-stacked treasury.

This raise is no joke - $195 million in equity and $189 million in convertible debt, all going straight to BTC. It's the most baller corporate Bitcoin move since Michael Saylor kicked off the trend back in 2020. Saylor's crew now holds a mind-blowing 597,325 BTC, worth a cool $64.4 billion, with a $22 billion unrealized gain on their $42.4 billion investment. Cha-ching!

Sequans CEO Georges Karam says this Bitcoin bet is their long-term hedge, pointing to the asset's scarcity and toughness as way better than hoarding cash.

"With this financing in the bag, we're ready to roll out our Bitcoin treasury strategy," said Georges Karam, CEO of Sequans. "We think Bitcoin's one-of-a-kind properties will boost our financial resilience and create some serious long-term value for our shareholders. We plan to keep snagging more Bitcoin down the road, using extra cash from our main biz and any additional funds we score."

How Sequans Pulled Off This $384M Bitcoin Pivot

The speed of Sequans' Bitcoin conversion is as crazy as the amount. They raised the cash just weeks after first teasing their pivot in a June announcement, which means investor interest was off the charts and the plan was already rolling.

Sequans is keeping the names of the 40+ investors under wraps, but the involvement of legit placement agents Northland Capital Markets and B. Riley Securities shows that traditional finance is still all about backing Bitcoin-centric strategies. Yorkville Securities, known for deals with Crypto.com and Trump Media's digital asset ventures, also helped seal the deal.

On top of the $195 million in equity and $189 million in convertible debt, investors got common stock warrants that can be used within 90 days. If they go all in, those warrants could pump another $57.6 million into Sequans' coffers. The company says they'll use most of the funds to buy Bitcoin, with the rest going to support treasury-related corporate stuff.

To make this new strategy happen, Sequans tapped Swan Bitcoin, an institutional service provider, to handle custody and execution. Swan's involvement shows that Sequans is all about regulatory compliance and security, which is crucial for public companies messing with digital assets.

Meanwhile, Sequans' NYSE listing is on the chopping block. After their market cap dipped below $50 million, they entered a cure period to avoid getting the boot. This Bitcoin pivot, along with the cash injection, looks like an attempt to turn their financial fortunes around. Investors are loving it, with shares jumping 60% in pre-market trading. Ka-pow!