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Sequans, a French tech firm that makes chips for 5G and IoT, is going big on Bitcoin. They just announced a massive $384 million private placement to start a Bitcoin treasury. That’s a bold play.
Out of the total, $195 million comes from selling equity. The other $189 million? Convertible secured notes—basically, debt that can turn into shares later.
The idea is to hold Bitcoin as a long-term asset, right next to their IoT work. CEO Georges Karam said Bitcoin’s value will help the company stay strong during rough times and reward shareholders.
To manage the crypto side, Sequans partnered with Swan Bitcoin—a U.S. firm that handles big Bitcoin investments and custody. Swan will make sure things are secure and smooth.
Karam made it clear they’re not ditching their core business. “We’re still focused on delivering top-notch 4G and 5G solutions,” he said.
The equity deal will include 1.39 billion new shares and extra warrants (contracts to buy shares later). They’re also offering more warrants linked to the debt. All this wraps up July 1, pending a vote on June 30.
Banks like Northland Capital, B. Riley, and Yorkville are handling the deal. Legal work is split between U.S. and French law firms.
Sequans is now part of the growing club of public companies betting big on Bitcoin, just like Strategy and Semler Scientific did. Their market cap is about $40 million. Still, the stock dropped 12% to $1.62 after the news. Oof.
*Footing:
Convertible notes: A loan that can become shares later.
Treasury asset: Money or stuff a company saves to stay financially healthy.*
