Sequans will launch a Bitcoin vault, raising $384 million.

Gate News bot news, global leader in 4G and 5G internet of things semiconductor technology Sequans Communications announced a major strategic move. The company plans to establish a Bitcoin vault, expanding into areas beyond its traditional business. This move reflects a trend common among technology companies, indicating that they see Bitcoin as a long-term store of value.

Through this move, Sequans will raise approximately $384 million through private placement. The company will raise about $195 million and $189 million in the form of equity securities and convertible secured bonds, respectively. This funding will facilitate the company's transition to the digital asset space and help improve its financial condition.

CEO Georges Karam pointed out that the Bitcoin funding strategy reflects the company's firm belief in Bitcoin as a leading asset and an exciting long-term investment. He further stated that the company is confident that Bitcoin can enhance financial resilience and increase shareholder value.

In order to effectively manage Bitcoin holdings, Sequans will collaborate with Swan Bitcoin. Swan Bitcoin is a reputable company that provides Bitcoin financial services for institutions. This alliance will help the company formulate new digital asset strategies and provide oversight and compliance.

Despite taking this step, Sequans will still adhere to its original business. Karam assured that the company will further provide innovative 4G and 5G internet of things solutions for its customers. Its goal is to ensure an efficient transition for customers between 4G and 5G, and to offer high-tech connectivity solutions.

At the time the company announced this move, many companies were adopting Bitcoin fund management strategies. Most notably, Parataxis Holdings recently acquired the South Korean biotech company Bridge Biotherapeutics, aiming to establish a platform focused on Bitcoin. Meanwhile, other companies such as Metaplanet, Know Labs, and Strategy (formerly MicroStrategy) have also decided to use Bitcoin as a reserve asset.

At the same time, Sequans is also facing the issue of being listed on the New York Stock Exchange (NYSE). On June 5, 2025, Sequans received a non-compliance notice from the NYSE. The reason is that the company's average market capitalization and shareholders' equity fell below the $50 million threshold within 30 days. Therefore, Sequans violated the provisions of Section 802.01B of the NYSE Listed Company Manual. As a result, Sequans must take corrective action to re-compliance and maintain its listing status. This has sparked condemnation of Section 802.01B of the NYSE Listed Company Manual.

In this regard, Sequans is optimistic that this funding will help it meet the requirements for listing on the NYSE again. This issuance must be approved by the company's shareholders by June 30, 2025, and meet other customary conditions, and is expected to be completed around July 1, 2025.

Finally, Sequans is taking a new step towards accepting Bitcoin treasury. They are doing this not only to achieve diversification but also to regain financial stability. Once successful, it can be used to restore investor confidence and make some progress for the company on the New York Stock Exchange.