Sequans Communications, a developer of IoT semiconductors and modules, has disclosed plans for a $384 million capital raise to fund its strategic Bitcoin treasury. The move comes as more companies are betting on Bitcoin (BTC) and using the world’s largest cryptocurrency as a reserve asset.
According to the company, it plans to issue and sell approximately $195 million in equity and $189 million in convertible debentures, which can later be converted into shares. For the endeavor, Sequans is partnering with Swan Bitcoin, a BTC treasury management provider.
“Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment,” Georges Karam, CEO of Sequans, said in a statement.
Sequans is part of growing trend of companies adding Bitcoin to their treasuries. On Saturday, Nakamoto Holdings raised $51.5 million in fresh capital to increase its Bitcoin stockpile. On Monday, Metaplanet announced the addition of 1,111 BTC to its treasury, bringing its holding to just around 400 shy of Tesla’s.
Adam Back, CEO of Blockstream and early cypherpunk, wrote on X that companies creating Bitcoin treasuries have given rise to a new kind of alt-season. “Time to dump ALTs into BTC or BTC treasuries,” he said.
According to BitcoinTreasuries.NET, about 240 companies hold BTC on their balance sheets as of Monday, which is up nearly 100% from just weeks ago. Together, those companies control around 4% of the total Bitcoin supply.
Related: The Blockchain Group to raise $340M for Bitcoin treasury
Risks of the corporate BTC treasury
Despite growing interest, several major companies, including Amazon, Meta and Microsoft, have opted not to add Bitcoin to their treasuries. Common concerns include the cryptocurrency’s high volatility and ongoing regulatory uncertainty. Corporate treasuries are typically intended to preserve capital, whereas allocating funds to Bitcoin can expose shareholders to significant market speculation.
Michael Saylor’s Strategy is still the largest corporate holder of Bitcoin. The company holds 592,345 Bitcoin, worth around $60.2 billion at this writing. Strategy has been aggressive in buying Bitcoin, often issuing large quantities of convertible debt to secure the cryptocurrency.
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