Sequans Communications is trading Bitcoin's traditional reserves and pouring $384 million in new raises into BTC. The company's CEO cites Bitcoin's “unique properties” as the driving force behind strategic change.
On July 8, France-based Sequans Communications announced the end of its $384 million private placement, with over 40 institutional investors backing the bold pivot of the Bitcoin (BTC)-controlled Treasury.
The salary increases, which account for $195 million in stock and $189 million in convertible debt, will be deployed almost entirely at BTC. This shows the most aggressive corporate move towards Bitcoin since Michael Saylor's strategy began trending in 2020. Saylor's Tysons Corner-based company currently owns 597,325 btc, earning $64.4 billion of undeserved profits of $22 billion on an investment of $42.4 billion.
Sequans CEO Georges Karam surrounded the Bitcoin Pivot as a long-term hedge, pointing to a lack of assets and resilience that is superior to traditional cash reserves.
“We are excited to begin implementing Bitcoin's financial strategy with this end of funding,” said Georges Karam, CEO of Sequans. “We believe that Bitcoin's unique properties will increase financial resilience and create long-term value for shareholders. Our intention is to continue to acquire Bitcoin in the future using excess cash generated from core business operations and additional revenue.”
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How Span pulled away the $384 million pivot
The speed of Span's Bitcoin conversion is as pronounced as its scale. The salary increase comes weeks after the company first pivoted at its June announcement, suggesting that investors are strong and plans are already in motion.
Although Sequans has not disclosed more than 40 participating investors, the involvement of regulated placement agents Northland Capital Markets and B. Riley Securities demonstrates the ongoing motivation of traditional finances in favor of a Bitcoin-centric strategy. Yorkville Securities, known for its transactions between crypto.com and Trump Media's digital asset venture, also played a role in the transaction.
Investors received a common stock warrant that could be exercised within 90 days, in addition to a $195 million shares and a $189 million conversion obligation. If fully executed, these warrants could add another $57.6 million to Sequans' balance sheet. According to the company, the proceeds are primarily used to acquire Bitcoin, with the rest being allocated to support Treasury-related corporate functions.
To implement the new strategy, Sequans tapped institutional service provider Swan Bitcoin to handle custody and execution. Swan's involvement suggests that Sequans prioritizes serious concerns for public companies dabbling with regulatory compliance and security, as well as digital assets.
Meanwhile, Sequans' NYSE list is at risk. After the company's market capitalization fell below $50 million, treatment began to be in progress to avoid being abolished. Bitcoin Pivot appears to aim to reset its financial trajectory along with capital injections. Investors welcomed the move, with stocks rising 60% in pre-market trading, according to Yahoo Finance data.
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