Sequans Communications is a leading developer of IoT modules and semiconductors. disclosed The company has announced plans to raise $384,000,000 in capital for its Bitcoin strategic treasury. As more businesses bet on Bitcoin, the move has been made.BTC( ) by using the largest crypto currency in the world as a form of reserve asset.
According to company officials, the firm plans to raise and sell about $195 million worth of equity, as well as $189 in convertible debentures that can be later converted to shares. Sequans has partnered with Swan Bitcoin to help fund the venture. Swan Bitcoin is a BTC Treasury Management provider.
“Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment,” Georges Karam is the CEO of Sequans.
Sequans joins a growing number of businesses adding Bitcoin to the treasury. Nakamoto Holdings announced on Saturday that it had acquired Sequans. raised $51.5 million in fresh capital The company has increased its Bitcoin reserves. Metaplanet revealed on Monday that the addition of 1,111 BTC to its treasuryIts holding is now just 400 shares short of Tesla’s.
Adam Back wrote a letter in which he, as the founder of Blockstream (and early cypherpunk), described his experiences. on X Companies creating Bitcoin treasuries has given birth to a brand new alt-season. “Time to dump ALTs into BTC or BTC treasuries,” “He said”
According to BitcoinTreasuries.NET, about 240 companies hold BTC on their balance sheets as of Monday, which is up nearly 100% from just weeks ago. Together, these companies account for around 4% the entire Bitcoin supply.
Related: The Blockchain Group to raise $340M for Bitcoin treasury
The risks of corporate BTC Treasury
Many major companies have resisted the growing demand for their products. including Amazon, Meta and MicrosoftSome have chosen to not add Bitcoin to the treasury. The high volatility of the cryptocurrency and regulatory uncertainty are two common concerns. Corporate treasuries aim to conserve capital. Allocating funds to Bitcoin, however, can expose investors to significant market speculation.
Michael Saylor’s Strategy remains the biggest corporate Bitcoin holder. The company currently holds approximately $60.2 billion worth of Bitcoin. The company has bought Bitcoin aggressively, issuing a large amount of convertible debt in order to do so.
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Source: cointelegraph.com
