After Sequans Communications S.A. (NYSE: SQNS) announced a bitcoin treasury strategy, the company’s shares jumped 15.54% in pre-market trading to $2.23. This daring move represents a strategic shift away from its conventional emphasis on the semiconductor cellular IoT market.
Strategic Financing to Fund Bitcoin Initiative
Sequans plans to use a combination of loan placements and private equity to generate about $384 million in total revenues. Approximately $189 million in convertible secured debentures and $195 million in equity instruments are part of the deal. In keeping with its view of bitcoin’s long-term potential as a robust and valued asset for shareholders, the business plans to create a bitcoin treasury, which this capital round will help to fund.
Collaboration with Swan Bitcoin and Continued IoT Commitment
Sequans plans to work with Swan Bitcoin, a pioneer in bitcoin treasury management systems, to carry out its bitcoin treasury effort. Sequans reaffirmed its commitment to its primary goal of developing 4G and 5G cellular IoT technology while welcoming this new course. The company maintains a strong product roadmap to support evolving IoT application demands and facilitate a smooth transition from 4G to 5G.
Details of the Private Placement Offerings
Sequans has concluded agreements for the sale of 1,392,857,140 ordinary shares (nominal value €0.01 per share), represented by 139,285,714 ADSs or pre-funded warrants, in addition to common warrants to purchase up to 208,928,460 ordinary shares (20,892,846 ADSs). The total cost of these instruments will be $0.14 per common share, or $1.40 each warrant and ADS.
Convertible debentures for $189 million and further rights to buy up to 202,499,980 common shares (20,249,998 ADSs) have also been obtained by the firm. Within ninety days following their separate closings, the warrants from both placements can be exercised.
Closing Timeline and Shareholder Approval
The offering is anticipated to conclude on or around July 1, 2025, subject to the satisfaction of normal closing conditions and shareholder approval at Sequans’ June 30, 2025, general meeting.
