Paris-based internet-of-things firm Sequans to raise $385 million via debt and equity offering to acquire bitcoin

Paris-based internet-of-things firm Sequans Communications (ticker SQNS) is the latest publicly traded firm to launch a Bitcoin treasury initiative, according to an announcement on Monday.

The firm plans to fund its purchases through nearly $385 million worth of private placement deals, including debt and equity offerings. Sequans plans to offer approximately $195 million in equity securities and $189 million worth of convertible bonds, taking a play from Strategy’s equity and debt-fueled acquisition playbook.

"Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment," Sequans CEO Georges Karam said in a statement. "We believe bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders."

Sequans is one of the latest firms to pursue a crypto treasury strategy, which essentially offers investors a leveraged trade on crypto assets. In recent months, there has been a bevy of publicly traded firms that have announced plans to sell shares and raise funds through debt to purchase crypto — including, most recently, an Anthony Pompliano-supported effort ProCap Financial.

Swan Bitcoin, the crypto financial services firm, will advise the company on its Bitcoin treasury scheme. Northland Capital Markets, B. Riley Securities, and Yorkville Securities served as placement agents for Sequans’s offering. The financing deal is expected to close by July 1, according to its announcement.

Sequans, founded in 2003, is a semiconductor company specializing in wireless cellular technology and the transition to 5G. The company has a $40 million market cap, and its shares fell 12% to $1.62 in Monday's trading session.