French fabless semiconductor company Sequans Communications (SQNS) has secured a $384 million strategic investment–$195 million via a PIPE of American Depositary Shares (ADS) and warrants, plus $189 million in secured convertible debentures–to fund the first phase of its newly announced bitcoin treasury initiative.
The PIPE comprised 139.4 million ADSs (each representing 10 ordinary shares) and detachable warrants for up to 20.9 million ADSs, all at $1.40 per unit. The debentures, maturing July 7, 2028, carry a 4% original issue discount and convert at $2.10 per ADS, alongside warrants exercisable at $1.40, potentially delivering an additional $57.6 million if fully tapped.
Bitcoin financial services firm Swan was appointed to manage secure execution and governance of the transaction, per a press release from Sequans.
“We believe bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders,” Sequans CEO Georges Karam said in the release. “Our intention is to continue acquiring bitcoin in the future, using excess cash generated from our core business operations and additional proceeds.”
At time of publication, SQNS is up 44% from market close on July 7.
