Sequans Raises $384M for Bitcoin Treasury Strategy

Sequans Raises $384M : Sequans Communications S.A. (NYSE: SQNS), a global leader in 5G/4G IoT semiconductor solutions, has announced a major strategic shift by initiating a bitcoin treasury strategy, backed by a substantial $384 million capital raise through private placements.

The move marks a bold expansion beyond its core semiconductor and cellular IoT business, as the company positions bitcoin as a long-term store of value on its corporate balance sheet.

“Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment,” said Georges Karam, CEO of Sequans. “We believe bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders.”

Sequans Raises $384M Through Dual Private Offerings

To fund this initiative, Sequans has entered into definitive agreements for two private placements:

• Equity Private Placement: Approximately $195 million through the sale of ADSs (American Depositary Shares), pre-funded warrants, and common stock warrants.
• Debt Private Placement: An additional $189 million through secured convertible debentures and accompanying warrants.

Combined, these offerings total $384 million in gross proceeds. The equity and debt transactions are expected to close on or around July 1, 2025, subject to shareholder approval on June 30, 2025, and other customary conditions.

The Offering is backed by leading financial and legal institutions.

• Northland Capital Markets and B. Riley Securities acted as joint lead placement agents
• Yorkville Securities participated as an additional placement agent
• Lowenstein Sandler LLP (U.S.) and ARCHERS AARPI (France) served as legal counsel to Sequans
• Goodwin Procter LLP advised the placement agents in both U.S. and French jurisdictions

Bitcoin Partnership and Strategy

To execute its bitcoin treasury initiative, Sequans plans to partner with Swan Bitcoin, a recognized leader in bitcoin treasury solutions for corporations. The company’s move follows a growing trend of public firms allocating part of their reserves to bitcoin as a hedge against inflation and fiat currency risk.

Notably, the securities offered in the placements are unregistered under the U.S. Securities Act of 1933 and applicable state laws. They are offered under exemptions and cannot be resold in public markets unless registered.

Core Business Still Front and Center

Despite its entry into digital assets, Sequans emphasized its continued commitment to the IoT space. “We remain fully focused on delivering advanced 4G and 5G solutions,” Karam added. “Our roadmap remains strong, and we are enabling a smooth transition to next-gen IoT connectivity for our global customers.”

Investor Outlook

With Sequans taking a pioneering step in integrating bitcoin into its financial strategy, investors are evaluating whether SQNS stock could represent a significant growth opportunity. Analysts note that combining tech innovation with crypto finance could strengthen the company’s long-term value proposition.

As macroeconomic uncertainty persists, more companies may follow suit by diversifying their treasuries. Whether this strategy pays off for Sequans—and its shareholders—remains to be seen.\

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