Sequans Communications, a developer of IoT semiconductors and modules, has announced a significant capital raise of $384 million to support its strategy of building a Bitcoin treasury. This initiative reflects a growing trend among corporations investing in Bitcoin as a store of value. Sequans plans to issue approximately $195 million in equity and $189 million in convertible debentures, which could eventually be converted into shares. The company is collaborating with Swan Bitcoin, a provider specializing in bitcoin treasury management.
Georges Karam, CEO of Sequans, emphasized, "Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment." The announcement follows other firms, like Nakamoto Holdings and Metaplanet, that have recently increased their Bitcoin holdings. Nakamoto raised $51.5 million, while Metaplanet acquired 1,111 BTC, now nearing a total of 400 BTC less than Tesla.
Notably, Adam Back, CEO of Blockstream, pointed out that the rush toward Bitcoin treasuries marks a new alt-season, hinting at a shift in investment strategies across the industry. As of now, about 240 companies reportedly hold Bitcoin on their balance sheets, nearly doubling in recent weeks, controlling roughly 4% of the total Bitcoin supply.
Despite this growing interest, several large corporations like Amazon and Microsoft remain hesitant to invest in Bitcoin due to concerns about its volatility and regulatory challenges. Corporate treasuries generally aim to preserve capital, and investing in Bitcoin can lead to considerable market speculation. The most significant corporate holder remains MicroStrategy, with 592,345 BTC worth approximately $60.2 billion as of now, having used aggressive strategies involving convertible debt to build its Bitcoin reserve.
Georges Karam, CEO of Sequans, emphasized, "Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment." The announcement follows other firms, like Nakamoto Holdings and Metaplanet, that have recently increased their Bitcoin holdings. Nakamoto raised $51.5 million, while Metaplanet acquired 1,111 BTC, now nearing a total of 400 BTC less than Tesla.
Notably, Adam Back, CEO of Blockstream, pointed out that the rush toward Bitcoin treasuries marks a new alt-season, hinting at a shift in investment strategies across the industry. As of now, about 240 companies reportedly hold Bitcoin on their balance sheets, nearly doubling in recent weeks, controlling roughly 4% of the total Bitcoin supply.
Despite this growing interest, several large corporations like Amazon and Microsoft remain hesitant to invest in Bitcoin due to concerns about its volatility and regulatory challenges. Corporate treasuries generally aim to preserve capital, and investing in Bitcoin can lead to considerable market speculation. The most significant corporate holder remains MicroStrategy, with 592,345 BTC worth approximately $60.2 billion as of now, having used aggressive strategies involving convertible debt to build its Bitcoin reserve.
