Sequans Communications S.A. (NYSE: SQNS) shares soared 44.06% on Tuesday, closing at $2.06 after the company announced the closing of its equity and debt funding tied to a new bitcoin treasury initiative. The stock extended its upward trend into Wednesday’s pre-market session, registering an additional 8.80% gain to reach $2.21 at the latest check.
Major Investment to Support Digital Asset Expansion
Sequans confirmed the successful completion of its previously disclosed private placement offering, raising a total of $384 million from over 40 institutional investors. The capital injection will primarily support the acquisition of bitcoin under Sequans’ new treasury strategy, marking SQNS’ official entrance into digital asset management. The funds will also cover general corporate needs associated with this bitcoin acquisition, in line with the Offering’s security and collateral terms.
Detailed Offering Structure and Investor Participation
American Depositary Shares (ADSs) totaling 139,444,614 were sold as part of the Offering; each ADS represented 10 common shares with a nominal value of €0.01. At a total price of $1.40 per unit, these ADSs, or comparable pre-funded warrants, were coupled with common warrants that permitted the purchase of up to 20,916,680 ADSs. This component of the Offering generated $195 million in gross proceeds.
Additionally, Sequans issued $189 million in secured convertible debentures maturing July 7, 2028, with a 4% original issue discount. These debentures can be converted into ordinary shares or equivalent pre-funded warrants at a conversion price of $2.10 per ADS. This portion of the Offering also included common warrants exercisable within 90 days, allowing the purchase of up to 20,249,997 ADSs. Combined, the total gross proceeds amounted to approximately $376 million.
Strategic Execution with Institutional Partnership
If all common warrants are fully exercised, Sequans could gain an additional $57.6 million, also earmarked for bitcoin purchases. In order to direct the implementation of the treasury strategy, the firm has chosen Swan Bitcoin as its institutional services partner. As SQNS incorporates bitcoin into its larger financial framework, this cooperation is anticipated to provide long-term shareholder value, transparent governance, and secure infrastructure.
