"Sequans Communications' Stock Surges 43% with Bold Bitcoin Strategy"

Sequans Communications’ stock surged 43% after unveiling a bold Bitcoin-focused treasury strategy, raising $384 million from equity and debt offerings. Over 40 institutional investors are backing the move, marking a significant shift towards companies adopting Bitcoin as a reserve asset.

CEO Georges Karam confirmed plans to immediately start purchasing Bitcoin to enhance financial resilience and shareholder value. Sequans intends to use cash flows from its core business and new capital raises to continue buying Bitcoin and meet governance requirements as outlined in the offering.

The company sold over 139 million American Depository Shares (ADSs) and secured convertible debentures, along with common warrants at $1.40 per ADS, potentially yielding an additional $57.6 million if fully exercised. Proceeds will be used to buy Bitcoin and fulfill governance requirements specified in the offering.

Sequans partnered with Swan Bitcoin to provide execution and custody security, similar to other companies using Bitcoin as a hedge against inflation and increasing sovereign debt. Following the announcement, Sequans’ stock soared over 43% in 24 hours, reaching $1.81 pre-market, as Bitcoin traded around $109,100.95, up 1.13%, according to Kraken’s price feeds. However, SQNS has seen a 43.75% decline year-to-date.

Read more at Yahoo Finance: Chip company’s stock jumps 43% after aggressive new strategy