Sequans Communications has disclosed plans to raise $384 million to fund its strategic Bitcoin treasury, reflecting a growing interest in cryptocurrency among businesses.
Bitcoin Treasury Strategy
Sequans Communications has announced a $384 million capital raise to finance its Bitcoin treasury initiative. 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. "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, stated.
Trends in Corporate Bitcoin Investments
Sequans is part of a growing trend of companies adding Bitcoin to their treasuries. In recent weeks, several companies have also increased their Bitcoin holdings. For instance, Nakamoto Holdings raised $51.5 million to boost its Bitcoin treasury, while Metaplanet announced the addition of 1,111 BTC to its treasury.
Risks of Corporate Bitcoin Treasuries
Despite the growing interest, several major companies, including Amazon, Meta, and Microsoft, have opted against adding Bitcoin to their treasuries. Common concerns include the cryptocurrency’s high volatility and ongoing regulatory uncertainties. Corporate treasuries are typically designed to preserve capital, whereas allocating funds to Bitcoin could expose shareholders to significant market speculation.
Sequans Communications' strategy to establish a Bitcoin treasury underscores the growing corporate interest in cryptocurrency, despite the associated risks and challenges.
