Semiconductor firm Sequans Communications, a Paris-based company specializing in 5G and 4G IoT semiconductor solutions, has announced a bold move into the world of cryptocurrency, aiming to raise $384 million to establish a Bitcoin treasury. This initiative marks a significant strategic shift for the company, expanding its focus beyond its core business.
The company plans to secure the $384 million through private placements, consisting of approximately $195 million in equity securities and $189 million in convertible secured debentures. The offering includes the sale of 139,285,714 American Depositary Shares (ADS) at $1.40 per ADS, along with common warrants. The closing of these transactions is expected around July 1, 2025, contingent upon shareholder approval at the company's general meeting on June 30, 2025, and other customary closing conditions. The debt placement is also contingent upon the completion of the equity placement.
Sequans has partnered with Swan Bitcoin, a well-known Bitcoin financial services firm, to manage its Bitcoin treasury. This partnership aims to leverage Swan Bitcoin's expertise in the cryptocurrency space to ensure effective capital deployment and management of the Bitcoin assets.
Georges Karam, CEO of Sequans, expressed strong confidence in Bitcoin as a long-term investment. "Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment," Karam stated. He believes that Bitcoin's unique characteristics will enhance the company's financial resilience and deliver significant value to its shareholders. Despite this new focus, Karam emphasized that Sequans remains committed to its core mission in the semiconductor IoT sector. The company will continue to support its customers with a robust 4G and 5G product roadmap, delivering innovative solutions to meet evolving IoT application needs and ensuring a smooth transition from 4G to 5G.
This strategic move comes as Sequans faces challenges related to compliance with New York Stock Exchange (NYSE) listing requirements. The company received a notice from the NYSE on June 5, 2025, informing them that its average global market cap had fallen below the required $50 million threshold over a consecutive 30 trading-day period, while its stockholders' equity also remained under $50 million. While this notice doesn't lead to immediate delisting, it places the company on a 90-day timeline to regain compliance. The initiative to raise funds for the Bitcoin treasury appears to be part of the company's efforts to boost its market cap and meet the exchange's criteria.
The decision by Sequans to invest in Bitcoin aligns with a growing trend among tech companies to incorporate cryptocurrency into their financial strategies. Companies like Tesla and MicroStrategy have previously added Bitcoin to their balance sheets, and Sequans' move positions them within this expanding group. This adoption of cryptocurrency by established companies could influence regulatory considerations and potentially reshape the tech investment landscape, reinforcing Bitcoin's role as a corporate financial tool.
Sequans' forward-looking statements acknowledge potential risks and uncertainties, including changes in global, political, economic, business, and competitive environments, as well as market and regulatory forces. The company is addressing the NYSE non-compliance notice and has 90 days to submit a plan to regain compliance. If accepted, this plan will allow its shares to continue trading during a nine-month cure period.
