Sequans Communications S.A. (NYSE: SQNS), a leading developer of 5G and 4G semiconductors for the Internet of Things (IoT), has announced a financial strategy to raise approximately $385 million through private placement offerings to establish a Bitcoin treasury. The move positions Sequans as the latest publicly traded company to embrace Bitcoin as a strategic reserve asset, reflecting growing corporate interest in cryptocurrency as a hedge against inflation and a long-term investment.
The funding will consist of $195 million in equity securities and $189 million in convertible secured debentures, with the transaction expected to close around July 1, 2025, pending shareholder approval at the company’s general meeting on June 30 and other customary conditions.
The debt placement is contingent on the equity offering raising at least $195 million. Sequans has partnered with Swan Bitcoin, a U.S.-based Bitcoin treasury management firm, to guide the initiative.
“Our Bitcoin treasury strategy reflects our strong conviction in Bitcoin as a premier asset and a compelling long-term investment.“ We believe Bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders.”
Georges Karam, CEO of Sequans
Karam emphasized that the company remains committed to its core IoT semiconductor business, continuing to advance its 4G and 5G product roadmap to meet evolving market demands.
The equity offering includes the sale of approximately 1.39 billion ordinary shares, equivalent to 139.3 million American Depositary Shares (ADSs), priced at $1.40 per ADS, along with warrants exercisable within 90 days. The debt portion comprises $189 million in secured convertible debentures with additional warrants for roughly 202.5 million ordinary shares.
Northland Capital Markets and B. Riley Securities are serving as joint lead placement agents, with Yorkville Securities as an additional placement agent. Legal counsel includes Lowenstein Sandler LLP (U.S.) and ARCHERS (AARPI) (France) for Sequans, and Goodwin Procter LLP for the placement agents.
Despite a strong balance sheet with more cash than debt and a current ratio of 1.94, Sequans has faced challenges, including a recent NYSE non-compliance notice due to its market capitalization and stockholders’ equity falling below $50 million. The company has 90 days to submit a compliance plan, with its shares continuing to trade during a nine-month cure period. Sequans’ market cap currently stands at around $40 million, with shares dropping 12% to $1.62 in trading on June 23, 2025.
This aligns Sequans with other firms, such as MicroStrategy, which holds over $60 billion in Bitcoin, and Nakamoto Holdings, which recently raised $51.5 million for a similar treasury strategy. However, major corporations like Amazon and Microsoft continue to avoid Bitcoin due to its volatility and regulatory uncertainties.
The securities are being offered under Section 4(a)(2) of the Securities Act of 1933 and have not been registered, limiting their sale in the U.S. to specific exemptions. Sequans plans to file resale registration statements for the securities post-closing.
