In a groundbreaking move, IoT semiconductor and module developer Sequans Communications, has unveiled its ambitious plan to raise $384 million in capital. This funding will bolster its Bitcoin treasury strategy, as more companies globally are making Bitcoin (BTC) their reserve asset of choice.
The company aims to raise approximately $195 million from equity issues and $189 million from convertible debentures, which can later be transformed into shares. Sequans has joined forces with Swan Bitcoin, a renowned BTC treasury management provider, for this initiative.
Georges Karam, CEO of Sequans, stated, “Our bitcoin treasury strategy reveals our unwavering faith in Bitcoin as an elite asset and a viable long-term investment.”
Sequans is the latest entrant in the growing list of companies that are adding Bitcoin to their treasury. Over the weekend, Nakamoto Holdings raised fresh capital of $51.5 million to boost its Bitcoin reserves. Metaplanet, on Monday, announced the addition of 1,111 BTC to its treasury, which brought its total holdings close to Tesla’s.
Adam Back, CEO of Blockstream and an early cypherpunk, pointed out that companies forming Bitcoin treasuries are heralding a new type of alt-season. “Time to switch from ALTs to BTC or BTC treasuries,” he suggested.
As per BitcoinTreasuries.NET, as of this Monday, roughly 240 companies have BTC on their balance sheets. This figure marks an almost 100% increase from just a few weeks ago. These companies together control about 4% of the total Bitcoin supply.
However, the corporate BTC treasury strategy is not without its risks. Major corporations like Amazon, Meta, and Microsoft have refrained from adding Bitcoin to their treasuries, citing concerns about the cryptocurrency’s high volatility and regulatory uncertainty. Allocating funds to Bitcoin could lead to significant market speculation, which is a concern for shareholders as corporate treasuries are typically used to preserve capital.
Despite these concerns, Strategy, led by Michael Saylor, remains the largest corporate holder of Bitcoin. The company currently holds 592,345 Bitcoin, estimated to be worth around $60.2 billion.
