Sequans Plans $384 Million Bitcoin Treasury Boost

Sequans Communications, a prominent developer of IoT semiconductors and modules, has announced its intention to raise $384 million in capital to support its strategic Bitcoin treasury. This initiative is part of a broader trend where companies are increasingly adopting Bitcoin as a reserve asset, reflecting a growing confidence in the cryptocurrency's long-term value.

The company plans to achieve this capital raise by issuing and selling approximately $195 million in equity and $189 million in convertible debentures, which can later be converted into shares. Sequans has partnered with Swan Bitcoin, a specialized BTC treasury management provider, to facilitate this endeavor. The move underscores Sequans' strong belief in Bitcoin as a premier asset and a compelling long-term investment, as stated by Georges Karam, CEO of Sequans.

Sequans is not alone in this trend. Other companies, such as Nakamoto Holdings and Metaplanet, have recently made significant additions to their Bitcoin holdings. Nakamoto Holdings raised $51.5 million in fresh capital to increase its Bitcoin stockpile, while Metaplanet added 1,111 BTC to its treasury, bringing its total holdings close to Tesla's. This growing interest in Bitcoin treasuries has been noted by industry experts, including Adam Back, CEO of Blockstream, who commented on the rise of a new kind of alt-season driven by companies creating Bitcoin treasuries.

According to BitcoinTreasuries.NET, approximately 240 companies now hold BTC on their balance sheets, representing a nearly 100% increase from just a few weeks ago. These companies collectively control around 4% of the total Bitcoin supply, highlighting the significant role that corporate treasuries are playing in the cryptocurrency market.

Despite the growing interest, several major companies, including Amazon, Meta, and Microsoft, have chosen not to add Bitcoin to their treasuries. Concerns about the cryptocurrency's high volatility and ongoing regulatory uncertainty are among the reasons cited for this caution. Corporate treasuries are traditionally intended to preserve capital, and allocating funds to Bitcoin can expose shareholders to significant market speculation. Michael Saylor’s Strategy remains the largest corporate holder of Bitcoin, with a holding of 592,345 Bitcoin, worth around $60.2 billion at the time of writing. Strategy has been aggressive in buying Bitcoin, often issuing large quantities of convertible debt to secure the cryptocurrency.