Sequans CEO Unveils Bold Plan to Continue Accumulating Bitcoin as Long-Term Treasury Strategy
- Why Is Sequans Betting Millions on Bitcoin?
- How Did Sequans Raise $384 Million for Its Bitcoin Strategy?
- What’s Driving Corporate Bitcoin Adoption in 2025?
- How Does Bitcoin Compare to Traditional Investments for Sequans?
- FAQ: Sequans’ Bitcoin Treasury Strategy Unpacked
In a groundbreaking move, Sequans Communications—a leading 5G/4G IoT semiconductor manufacturer—has secured a $384 million strategic investment to fuel its bitcoin treasury strategy. CEO Georges Karam reveals plans to persistently acquire Bitcoin using excess cash flow, citing its role in financial resilience and shareholder value. The announcement sent Sequans’ stock soaring 27% pre-market, while Bitcoin held steady at $108,976. This article dives into the funding mechanics, institutional adoption trends, and why companies like Sequans are betting big on Bitcoin amid economic uncertainty. ---
Why Is Sequans Betting Millions on Bitcoin?
Sequans Communications isn’t just dipping its toes into Bitcoin—it’s diving in headfirst. The company’s $384 million funding round, backed by over 40 institutional investors, will primarily fuel Bitcoin purchases and related corporate investments. CEO Georges Karam emphasized Bitcoin’s "unique properties" as a hedge against inflation and a driver of long-term value. This aligns with moves by firms like MicroStrategy (holding 597,325 BTC) and Japan’s Metaplanet, which recently adopted Bitcoin as a reserve asset. Notably, Sequans partnered with Swan Bitcoin for secure execution, leveraging institutional-grade custody solutions. The market responded instantly: SQNS shares surged 27% pre-market to $1.81, though they remain down 48% YTD.
---How Did Sequans Raise $384 Million for Its Bitcoin Strategy?
The funding cocktail mixed debt and equity: - $195 million from selling 139.4 million American Depositary Shares (ADS) at $1.40 each. - $189 million via convertible debentures maturing in 2028, issued at a 4% discount. - Warrants for 20.9 million additional ADSs could inject another $57.6 million if exercised. Northland Capital Markets and B. Riley Securities orchestrated the deal, with Lowenstein Sandler LLP providing legal counsel. The structure highlights institutional confidence—a stark contrast to retail’s "extremely optimistic" sentiment on social media, per TradingView data.
---What’s Driving Corporate Bitcoin Adoption in 2025?
Economic turbulence is the unspoken catalyst. MicroStrategy’s Michael Saylor argues Bitcoin shields companies from currency debasement, while MetaPlanet’s Dylan Leclair points to "unsustainable sovereign debt-to-GDP ratios." Institutions now hold ~3.49 million BTC, with BlackRock’s ETF leading the pack. Sequans’ MOVE mirrors this macro trend, but with a twist: Karam plans ongoing accumulation via operational cash flow—a sustainable approach compared to one-off purchases. "This isn’t speculation; it’s a treasury revolution," remarked a BTCC analyst.
---How Does Bitcoin Compare to Traditional Investments for Sequans?
Bitcoin’s 0.6% daily gain might seem modest, but its volatility pales against SQNS’ 48% YTD drop. The semiconductor firm’s pivot echoes Tesla’s 2021 Bitcoin playbook, albeit with stricter governance. Karam stressed "security and transparency" via Swan Bitcoin’s infrastructure—a nod to post-FTX institutional caution. Meanwhile, CoinGlass data shows Bitcoin open interest rising 12% this week, signaling renewed institutional appetite.
---FAQ: Sequans’ Bitcoin Treasury Strategy Unpacked
What is Sequans’ Bitcoin investment amount?
Sequans raised $384 million for Bitcoin and general corporate purposes, with purchases executed incrementally.
Why did SQNS stock jump 27%?
Investors cheered the Bitcoin strategy as a potential value catalyst, despite the stock’s 2025 downtrend.
Who advised Sequans on the deal?
Northland Capital Markets, B. Riley Securities, and legal teams from Lowenstein Sandler LLP (US) and Archers (France).
How does Sequans’ Bitcoin approach differ from MicroStrategy’s?
Sequans plans steady accumulation via cash flow, while MicroStrategy uses debt/equity for lump-sum purchases.
What’s Bitcoin’s price outlook post-announcement?
BTC held at $108,976 (+0.6%). Analysts note institutional inflows may offset typical summer lulls.
