Sequans Stock Soars as Internet of Things Chipmaker Raises $384M to Buy Bitcoin

U.S.-listed shares of Sequans Communications (SQNS) soared more than 30% Tuesday as the maker of chips for the Internet of Things announced it had raised $384 million to begin banking bitcoin.

The Paris-based firm said it had closed a debt and equity private placement, which included the sale of nearly 140 million American Depositary Shares for $195 million, and “$189 million in principal amount of secured convertible debentures due July 7, 2028.”

Sequans noted that all of the money raised “will be used to purchase bitcoin, initiating the first phase of the Company’s previously announced bitcoin treasury strategy, and for general corporate purposes associated with purchasing bitcoin.”

CEO Georges Karam said the company believes “bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders.” Karam added that Sequans plans “to continue acquiring bitcoin in the future, using excess cash generated from our core business operations and additional proceeds.”

Even with Tuesday’s sharp gains, U.S.-listed shares of Sequans Communications have lost nearly half their value this year.