Sequans Communications' Q2 2025: Key Contradictions in IoT Revenue, Bitcoin Strategy, and 5G Development

IoT business revenue ramp-up and break-even point, Bitcoin investment strategy and target, Bitcoin accumulation strategy and financial focus, Qualcomm's role and strategic partnership, and 5G development and market strategy are the key contradictions discussed in Sequans Communications' latest 2025Q2 earnings call.



Bitcoin Treasury Strategy:
- Sequans Communications completed the deployment of all net proceeds from a `$384 million` offering, acquiring 3,072 Bitcoins.
- The company holds these Bitcoins, acquired at an average purchase price of `$116,690` per Bitcoin, with a current Bitcoin NAV of around `$363 million`.

IoT Revenue Growth:
- Sequans' second quarter IoT revenue was `$8.14 million`, in line with guidance, with a Product revenue of `$3.85 million`, up 10% quarter-over-quarter and 59% year-over-year.
- The growth was driven by the shipment of Monarch 2 and new design wins, including the Iris family of RF transceivers addressing defense, drones, and V2X automotive applications.

Cash Management and Improvement:
- Cash, cash equivalents, and short-term deposits at June 30 were `$41.6 million`, representing a significant reduction in cash burn.
- This improvement is attributed to receiving some government R&D funding earlier than expected and anticipated collection of the remaining `$10 million` from Qualcomm held in escrow.