Sequans Communications Raises $384M for Bitcoin Treasury Initiative

Sequans Communications S.A. (NYSE: SQNS) announced Monday it is establishing a bitcoin treasury initiative, raising $384 million through private placement offerings to fund the strategic expansion alongside its core 5G/4G IoT semiconductor business.

The Paris-based company will issue approximately $195 million in equity securities and $189 million in convertible secured debentures to implement the bitcoin treasury strategy, according to a statement on Monday. Sequans expects to partner with Swan Bitcoin, a leading provider of Bitcoin treasury management solutions, for the initiative.

"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."

The announcement adds Sequans to the growing list of public companies adopting bitcoin treasury strategies. Earlier Monday, Bitcoin advocate Anthony Pompliano's crypto venture ProCap Financial announced it will go public through a merger with SPAC Columbus Circle Capital Corp. , with the combined company holding up to $1 billion in Bitcoin on its balance sheet.

The trend of corporate bitcoin treasuries has gained momentum since Strategy pioneered the strategy in 2020, with companies like Marathon Digital Holdings, Tesla, and others adding Bitcoin to their balance sheets as a treasury asset. The strategy has attracted renewed interest following bitcoin's approximately 50% rally since Donald Trump's election victory in November.

Sequans emphasized it remains committed to its core semiconductor business while pursuing the bitcoin initiative. "We continue to support our customers with a robust 4G and 5G product roadmap, delivering innovative solutions to meet evolving IoT application needs and ensuring a seamless transition from 4G to 5G," Karam said.

The company's equity placement involves issuing 139.3 million American Depositary Shares and warrants at a combined price of $1.40 per ADS. The convertible debentures carry a $189 million principal amount with additional warrant coverage.

Northland Capital Markets and B. Riley Securities served as joint lead placement agents for the offering, with Yorkville Securities as placement agent. The transaction is expected to close around July 1, 2025, subject to shareholder approval at a June 30 meeting and customary closing conditions.

The move represents a significant strategic shift for Sequans, which develops cellular IoT semiconductors and modules for connected device applications.