Semiconductor giant Sequans ditches cash for Bitcoin in $384m treasury overhaul

Sequans Communications is swapping traditional reserves for Bitcoin, funneling $384 million in newly raised capital into BTC. The company’s CEO cites Bitcoin’s “unique properties” as the driving force behind the strategic shift.

On July 8, France-based Sequans Communications announced the close of a $384 million private placement, with over 40 institutional investors backing its bold pivot toward a Bitcoin (BTC)-dominated treasury.

The raise, comprising $195 million in equity and $189 million in convertible debt, will be deployed almost entirely into BTC. This marks the most aggressive corporate move toward Bitcoin since Michael Saylor’s Strategy began the trend in 2020. Saylor’s Tysons Corner-based firm now holds 597,325 BTC, valued at $64.4 billion, with a $22 billion unrealized gain on its $42.4 billion investment.

Sequans CEO Georges Karam framed the Bitcoin pivot as a long-term hedge, pointing to the asset’s scarcity and resilience as superior to traditional cash reserves.

How Sequans pulled off its $384 million pivot

The speed of Sequans’ Bitcoin conversion is as notable as its scale. The raise came just weeks after the company first floated its pivot in a June announcement, suggesting investor interest was strong and the plan already in motion.

While Sequans has not disclosed the more than 40 participating investors, the involvement of regulated placement agents Northland Capital Markets and B. Riley Securities signals traditional finance’s ongoing willingness to back Bitcoin-centric strategies. Yorkville Securities, known for its deals with Crypto.com and Trump Media’s digital asset ventures, also played a role in closing the transaction.

In addition to the $195 million in equity and $189 million in convertible debt, investors received common stock warrants exercisable within 90 days. If fully executed, those warrants could add another $57.6 million to Sequans’ balance sheet. According to the company, proceeds will be used primarily to acquire Bitcoin, with the remainder allocated to support treasury-related corporate functions.

To carry out its new strategy, Sequans tapped Swan Bitcoin, an institutional service provider, to handle custody and execution. Swan’s involvement suggests Sequans prioritizes regulatory compliance and security, critical concerns for public companies dabbling in digital assets.

Meanwhile, Sequans’ NYSE listing remains in jeopardy. After the company’s market cap fell below $50 million, it entered a cure period to avoid delisting. The Bitcoin pivot, along with the capital injection, appears aimed at resetting its financial trajectory. Investors welcomed the move, with shares jumping 60% in pre-market trading, according to Yahoo Finance data.