IoT chipmaker Sequans joins Bitcoin wave, shares surge 43%
Sequans raises $384M to begin buying Bitcoin immediately
Shares of Sequans Communications, a chipmaker specializing in Internet of Things (IoT) solutions, soared by 43% following the company’s announcement of a new treasury strategy involving Bitcoin.
Sequans, a global leader in 5G and 4G IoT technology, declared its readiness to immediately begin acquiring Bitcoin as part of a strategy approved by over 40 institutional investors.
To fund this initiative, the company raised $384 million by selling over 139 million American Depositary Shares (ADS), secured convertible notes maturing in 2028, and common stock warrants priced at $1.40 per ADS. If fully exercised, the warrants could raise an additional $57.6 million.
CEO Georges Karam stated that Bitcoin’s scarcity and decentralized nature could strengthen Sequans’ financial resilience and long-term shareholder value. He also emphasized that the company will continue acquiring more Bitcoin using cash flows from its core business as well as newly raised funds.
Investors embrace Sequans' Bitcoin strategy
To ensure secure execution and custody of its Bitcoin holdings, Sequans has partnered with Swan Bitcoin, a well-known institutional Bitcoin service provider.
SQNS price dynamics for 24 hours. Source: TradingView
Following the announcement, Sequans’ (SQNS) stock surged by over 43% in just 24 hours, hitting a pre-market high of $1.81—effectively offsetting the stock’s year-to-date decline.
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