Semiconductor giant Sequans ditches cash for Bitcoin in $384m treasury overhaul

Key Points

1. Sequans Communications raised $384 million through a private placement, with $195 million in equity and $189 million in convertible debt, to be primarily invested in Bitcoin.

2. The company's CEO, Georges Karam, described the move as a long-term hedge, emphasizing Bitcoin's unique properties as the reason for the strategic shift.

3. The investment marks one of the most significant corporate pivots to Bitcoin since MicroStrategy began the trend in 2020.

4. The funds will be used to acquire Bitcoin, handle custody, and execution, with potential additional capital from warrants exercisable within 90 days.

5. Sequans' NYSE listing is at risk due to its market cap falling below $50 million, but the announcement caused a 60% pre-market trading surge in its shares.