French Firm Sequans Raises $384M to Acquire Bitcoin (BTC)

French semiconductor company Sequans Communications recently made headlines after announcing a massive $384 million raise to build a Bitcoin treasury, making it one of the largest corporate Bitcoin acquisition moves this year.

Sequans, known for producing 4G and 5G chips, is shifting part of its focus toward long-term digital asset investment. The company will inject the funds into purchasing BTC. This way, it joins the growing list of public companies adding the leading cryptocurrency to their balance sheets.

How Sequans Secured the Cash

The company raised its million-dollar portfolio through various channels. One is $195 million in equity funding, where investors bought shares at $1.40 each. Another is a $189 million funding via convertible debt, where the debt can later be converted into shares at $2.10. The final $57 million will surface if all bonus warrants are exercised.

Sequans is working with the Bitcoin-focused company Swan Bitcoin to manage its Bitcoin treasury. The company believes this will help to ensure secure custody and proper handling of the funds. Sequans CEO Georges Karam said:

“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 news caused Sequans’ stock price (SQNS) to surge, with investors reacting positively to the bold strategy. At the time of writing, the stock sold for $1.43, representing a 23.7% surge within the past 24 hours.

Other Companies Are Doing the Same

Sequans is not alone in the Bitcoin acquisition practice. Business intelligence firm Strategy popularized the practice of periodically acquiring BTC. In recent times, other firms have followed suit.

One example is DigitalX, an Australian crypto investment company that recently raised $13.54 million to buy BTC. The firm raised the funds via a share sale at $0.074 each. Key backers include Animoca Brands, UTXO Management, and ParaFi Capital.

DigitalX plans to use $12.9 million of the money to grow its Bitcoin holdings. The firm may also issue bonus warrants to investors. UTXO Management, one of the investors, will nominate a board member. The company already manages a Bitcoin ETF (ASX: BTXX) and holds over $63 million in crypto assets.

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