French semiconductor firm Sequans Communications announced plans to raise $200 million through an equity offering program. The funds will be directed toward Bitcoin purchases under the company's long-term treasury strategy.
Equity Offering Program
Paris-based Sequans Communications stated that the capital-raising program supports the initial phase of the company’s treasury establishment efforts. According to its latest SEC filing dated August 25, the firm plans to issue American Depositary Shares at its discretion, each representing ten ordinary shares.
Bitcoin Accumulation Strategy
Sequans' CEO, Georges Karam, stated that the proceeds from the initiative will be utilized for accumulating Bitcoin in line with the company’s treasury strategy. Recently, Sequans also intended to raise approximately $384 million for its Bitcoin accumulation strategy, which includes a partnership with the BTC treasury management provider Swan Bitcoin.
Market Insights and Expert Opinions
Dan Dadybayo, a research and strategy lead at Unstoppable Wallet, noted that raising equity to purchase Bitcoin dilutes existing shareholders. He believes this initiative carries certain risks related to the company maintaining operational discipline. Adam Back, inventor of Hashcash, argued that the adoption of Bitcoin by companies has become a new trend among digital asset speculators.
Sequans' initiative to raise $200 million marks a significant step towards Bitcoin accumulation and demonstrates the company’s confidence in this asset. At the same time, experts emphasize the risks associated with such long-term strategies.
