Raising Bitcoin funding. The French company Sequans Communications recently announced its intention to raise $200 million through a stock offering to finance its strategy for purchasing Bitcoin. The company already owns over 3,000 Bitcoins and aims to strengthen its position in the cryptocurrency market, with an ambitious goal of reaching 100,000 Bitcoins by 2030.
Sequans Communications, led by its CEO Georges Karam, is seeking to raise $200 million through an At-the-Market (ATM) equity program. These funds will primarily be used to purchase Bitcoin, in line with the company's treasury management strategy.
Sequans, a manufacturer of semiconductors for 4G and 5G networks, plans to issue American Depositary Shares (ADS), allowing American investors to purchase shares of foreign companies listed on U.S. exchanges. This move is part of a broader plan to raise up to 100,000 Bitcoins by 2030.
Sequans already owns over 3,000 Bitcoins
With 3,171 Bitcoins in its reserves, Sequans is the second largest holder of Bitcoin in Europe, after the German Bitcoin Group SE. The company announced in June its intention to make Bitcoin a core asset in its treasury, joining a growing trend among publicly listed companies.
Georges Karam, CEO of Sequans, stated: "We intend to use it wisely to enhance our cash flows, increase the value of Bitcoin per share, and achieve long-term value for shareholders."
Bitcoin price does not deter companies
This funding comes at a time when the price of Bitcoin is experiencing a slight decline, stabilizing at around $110,000 after reaching an all-time high of $124,517 on August 14. Despite this volatility, corporate adoption of Bitcoin continues to grow, with giants like MicroStrategy and Metaplanet also increasing their reserves.
Sequans, which also raised $189 million in July through secured convertible debt and warrants, is using these funds to bolster its position in the Bitcoin market. Although this strategy is risky due to market volatility, it could yield significant returns if the price of Bitcoin continues to rise.
As the number of companies holding Bitcoin continues to increase, Sequans' strategy reflects growing confidence in Bitcoin's role as a store of value and a hedge against inflation.