Sequans Communications, a Paris-based semiconductor firm listed on the NYSE, has introduced plans to promote as much as $200 million in shares through an at-the-market (ATM) fairness program, with the proceeds earmarked for additional bitcoin purchases.
Sequans’ daring bitcoin treasury goal
The corporate has set a objective to build up 100,000 BTC by 2030, a determine that might characterize almost 0.5% of all bitcoin provide.
At present, Sequans holds 3,171 BTC, price about $350 million, making it the second-largest company bitcoin holder in Europe after Germany’s Bitcoin Group SE.
If Sequans have been to deploy the brand new $200 million in proceeds at present costs, its holdings may rise to roughly 5,000 BTC, rivaling U.S.-based Semler Scientific.
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Fundraising and shareholder affect
In July, Sequans raised $189 million by way of secured convertible debentures and warrants, bringing its complete latest fundraising to roughly $376 million.
With the brand new ATM program, Sequans can have raised near $576 million for its bitcoin treasury technique.
CEO Georges Karam described the method as a foundational transfer:
We intend to make use of it judiciously to optimize our treasury, enhance Bitcoin per share, and ship long-term worth to shareholders.
Dangers and rewards of the bitcoin proxy mannequin
Business observers word that this aggressive technique positions Sequans as a number one company adopter of bitcoin, but additionally exposes shareholders to bitcoin’s volatility.
Analysts are break up, weighing the potential long-term upside towards the dilution of current shareholders.
Not like MicroStrategy’s historic method, Sequans doesn’t have a billion-dollar cushion to climate prolonged downturns.
The corporate’s ambition marks a big shift from its conventional semiconductor function towards turning into a bitcoin proxy inventory.
Wanting forward
Sequans’ success will depend upon disciplined treasury administration and bitcoin’s future value trajectory.
The corporate’s long-term conviction in bitcoin is evident, however its fortunes are actually tightly linked to the asset’s efficiency.