Sequans Communications, a fabless semiconductor firm specializing in 5G/4G IoT semiconductor know-how, has formally closed a $384 million strategic funding to kick off its Bitcoin treasury initiative. The deal combines $195 million in fairness financing and $189 million in secured convertible debentures, reflecting rising institutional urge for food for Bitcoin.
The Providing included the sale of over 139 million American Depositary Shares (ADSs), with further widespread warrants exercisable inside 90 days, contributing $195 million in gross proceeds. The $189 million in convertible debentures, due July 7, 2028, have been issued at a 4% low cost and include additional widespread warrants. If all warrants are exercised, Sequans may achieve one other $57.6 million, allotted primarily for extra Bitcoin purchases.
“With the closing of this financing, we’re excited to start executing our bitcoin treasury technique,” stated Georges Karam, CEO of Sequans. “We imagine Bitcoin’s distinctive properties will improve our monetary resilience and create long-term worth for our shareholders. Our intention is to proceed buying Bitcoin sooner or later, utilizing extra money generated from our core enterprise operations and extra proceeds.”
To implement this technique securely and transparently, Sequans will companion with Swan Bitcoin, a number one U.S.-based Bitcoin monetary providers agency specializing in custody, liquidity, and institutional technique.
The securities have been provided by way of non-public placement and haven’t been registered underneath the U.S. Securities Act of 1933. Northland Capital Markets and B. Riley Securities acted as joint lead placement brokers, with Yorkville Securities additionally taking part. Authorized help got here from Lowenstein Sandler LLP (U.S.) and ARCHERS (France) for the corporate, and Goodwin Procter LLP for the position brokers.
This announcement follows Sequans’ June 23 disclosure of its plan to boost $384 million for a Bitcoin-focused treasury technique. “Our Bitcoin treasury technique displays our robust conviction in Bitcoin as a premier asset and a compelling long-term funding,” Karam stated final month. That earlier assertion laid the groundwork for at present’s closing.
On the time, Karam additionally emphasised that the transfer into Bitcoin wouldn’t take away from Sequans’ core enterprise. “We proceed to help our prospects with a sturdy 4G and 5G product roadmap,” he stated, reinforcing the corporate’s ongoing concentrate on IoT innovation. The Bitcoin technique is designed to run in parallel—including monetary power whereas Sequans continues constructing next-gen connectivity options.
