
What You Should Know:
- Sequans Communications’ stock surged by 35% after completing a $384 million private placement aimed at investing largely in Bitcoin.
- This deal comprised a sale of American depositary shares, warrants, and secured convertible debentures.
- Sequans is joining a rising faction of publicly traded companies treating Bitcoin as their principal treasury reserve asset.
Sequans Communications (SQNS) experienced an upward leap exceeding 40% after wrapping up a $384 million private placement, with intentions to allocate a significant portion of that into Bitcoin. The arrangement included a $195 million sale of American depositary shares and warrants priced at $1.40, along with $189 million in five-year secured convertible debentures available at a 4% discount, according to a press release.
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The company’s American depositary shares reached $2.01 on Nasdaq following the announcement. If all warrants are exercised, Sequans could also gain an additional $57.6 million, primarily allocated for Bitcoin acquisitions.
CEO Georges Karam indicated that the asset is believed to bolster financial resilience and foster long-term value. Sequans specializes in the design of low-power 4G and 5G modems utilized in smart meters and industrial sensors.
Swan Bitcoin will manage the sourcing and custody of the Bitcoin, with Northland Capital Markets and B. Riley Securities overseeing the financing. This strategic decision marks Sequans’ entry into a growing list of publicly listed companies adopting Bitcoin as a major treasury reserve, with 852,309 BTC currently being held by such firms.