Sequans Communications, a developer of IoT semiconductors and modules, has announced plans for a $384 million capital raise aimed at funding its strategic investment in Bitcoin. The cryptocurrency’s increasing acceptance as a reserve asset among businesses was cited as a key motivation.

According to the company, the funding will come from a combination of equity issuance ($195 million) and convertible debentures ($189 million). Sequans has partnered with Swan Bitcoin, a specialized treasury management provider, for this transaction.

“Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment,” Georges Karam, CEO of Sequans, said in a statement.

Sequans’ move aligns with a growing trend where companies expand their treasury holdings to include Bitcoin. Notable recent examples include Nakamoto Holdings, which secured $51.5 million recently to augment its Bitcoin reserves, and Metaplanet, which recently increased its treasury by acquiring 1,111 BTC.

Prominent Bitcoin advocate Adam Back commented on the trend, suggesting it establishes a market niche. “Time to dump ALTs into BTC or BTC treasuries,” he tweeted.

BitcoinTreasuries.NET lists approximately 240 companies holding Bitcoin on their balance sheets, a nearly 100% increase from nearly a month ago. Together, these corporate treasuries hold roughly 4% of the cryptocurrency’s total supply.

Related: The Blockchain Group to raise $340M for Bitcoin treasury

Risks of the corporate BTC treasury

Despite the growing interest, major corporations like Amazon, Meta, and Microsoft remain hesitant, citing Bitcoin’s volatility and regulatory uncertainty as primary concerns. Corporate treasuries typically prioritize capital preservation, and critics argue Bitcoin allocation introduces significant market speculation risk.

Nevertheless, companies that embrace the trend have been aggressive buyers. MicroStrategy (MSR), led by Michael Saylor, remains the highest-profile corporate holder, with approximately 592,345 BTC currently valued at over $60 billion.

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