Sequans Communications secured a $384 million investment to begin a Bitcoin treasury initiative, comprising $195 million in equity and $189 million in convertible debentures. The deal involves over 139 million American Depositary Shares and potential additional funds from warrants. The company plans to leverage excess operational cash for further Bitcoin acquisitions. Sequans will collaborate with Swan Bitcoin for security and transparency in managing its Bitcoin assets. The investment follows Sequans' earlier announcement to raise funds specifically for this strategy.
"With the closing of this financing, we are excited to begin executing our bitcoin treasury strategy," said 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."
The $189 million in convertible debentures, due July 7, 2028, were issued at a 4% discount and come with further common warrants. If all warrants are exercised, Sequans could gain another $57.6 million, allocated primarily for additional Bitcoin purchases.
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