French firm pours $384 million into Bitcoin investment!
Sequans Communications, a French group specialising in IoT semiconductors, has made a strategic move by investing $384 million in Bitcoin to enhance its financial resilience and create long-term value for shareholders. This significant step combines $195 million raised through equity financing with an additional $189 million in secured convertible debentures, primarily dedicated to purchasing Bitcoin.
The key reasons behind Sequans' investment include economic volatility and liquidity needs, a pivot in financial strategy, and risk management via partnerships. With challenges such as declining shareholder equity and slowing demand in its IoT semiconductor business, Sequans seeks to strengthen its balance sheet by diversifying into Bitcoin, which they view as a scarce and potentially inflation-resistant store of value.
CEO Georges Karam stated that Bitcoin’s unique properties are expected to enhance financial resilience. The company plans to continue acquiring Bitcoin using excess cash flows and future proceeds, signaling a long-term commitment. To ensure secure implementation, Sequans partnered with Swan Bitcoin, an institutional Bitcoin financial services firm specialising in custody and liquidity management, reducing operational and security risks related to managing large crypto holdings.
This strategic move by Sequans is part of a broader trend among corporations, especially in tech, using Bitcoin as part of their treasury reserves to hedge against fiat currency depreciation and economic uncertainty. Similar strategies have been seen with larger firms like MicroStrategy, but Sequans represents a smaller, more niche player taking proportionally significant risk by allocating a large share of capital to Bitcoin.
Institutional appetite for Bitcoin is growing, evident by the $384 million raised by Sequans, along with similar movements by other companies adding meaningful Bitcoin reserves in 2021. Over 135 public companies now hold Bitcoin in their treasuries, signaling increasing corporate confidence in cryptocurrency as a legitimate reserve asset.
This trend could catalyze longer-term price support and broader market adoption, as corporate Bitcoin treasury programs are seen by investors as signals of confidence and financial innovation. As more businesses diversify their portfolios with this new asset class, this trend is likely to continue and accelerate in the coming years.
Charles Ledoux, a Bitcoin and blockchain technology specialist with experience in mining Bitcoin, educating new entrants, and writing articles, shares his passion for crypto through his articles on various platforms. This investment by Sequans Communications is a significant step in the legitimization of Bitcoin in the business world for French and European investors.
[1] Coindesk. (2021). Sequans Communications Invests $384 Million in Bitcoin. [online] Available at: https://www.coindesk.com/business/2021/09/14/sequans-communications-invests-384-million-in-bitcoin/ [2] The Block. (2021). Sequans Communications raises $384 million to buy Bitcoin. [online] Available at: https://www.theblockcrypto.com/linked/115060/sequans-communications-raises-384-million-to-buy-bitcoin [3] Sequans Communications. (2021). Sequans Communications Announces $384 Million Investment in Bitcoin. [online] Available at: https://www.sequans.com/news/sequans-communications-announces-384-million-investment-in-bitcoin/ [4] Cointelegraph. (2021). More than 135 public companies now hold Bitcoin in their treasuries. [online] Available at: https://cointelegraph.com/news/more-than-135-public-companies-now-hold-bitcoin-in-their-treasuries
- Recognizing Bitcoin's potential as a scarce, inflation-resistant store of value, Sequans Communications, a French tech group specializing in IoT semiconductors, has partnered with Swan Bitcoin to securely implement a long-term investing strategy in Bitcoin, with the aim of strengthening its financial resilience and creating value for shareholders.
- As part of the broader trend among tech corporations diversifying their treasury reserves, Charles Ledoux, a Bitcoin and blockchain technology specialist, sees the investment by Sequans Communications as a significant step in legitimizing Bitcoin in the business world, particularly for French and European investors.
