A tiny semiconductor company is surging after raising 7x its market value to buy bitcoin

On June 23, Sequans Communications, a developer and provider of 5G/4G Internet of Things semiconductors and modules, was a less than $50 million market cap company announcing plans to raise $384 million to launch a Bitcoin treasury initiative.

Today, it’s worth over $300 million, with shares up 30% on the session as the funds for its “bitcoin pivot” were successfully procured.

The Paris-based company said that all the proceeds will be used to acquire bitcoin.

The $384 million raise includes a $195 million private investment in public equity and $189 million in convertible debentures, with the participation of more than 40 institutional investors.

“With the closing of this financing, we are excited to begin executing our bitcoin treasury strategy,” Sequans Communications CEO Georges Karam said in the press release. “We believe bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders.”

Sequans partnered with Swan Bitcoin to leverage “its expertise to ensure secure execution, robust governance, and market transparency.”

While the “pivot to bitcoin” strategy looked a little wobbly for some firms a month ago, it looks like the game is back on.