Sequans Communications to Establish Bitcoin Reserves with $384 Million Private Placement

Sequans Communications, a company listed on the NYSE, has announced a significant strategic move to establish Bitcoin reserves through a $384 million private placement. This initiative is part of the company's broader strategy to diversify its reserves while continuing to develop its core semiconductor and IoT business. The funding will be raised through two private placements: $195 million in equity securities and $189 million in secured convertible debt. The equity portion will issue over 1.39 billion ordinary shares and related warrants priced at $1.40 per ADS, including 139 million American Depositary Shares and additional warrants exercisable within 90 days of closing. The debt placement involves $189 million in secured convertible debentures and more warrants tied to share purchases. All offerings are exempt from U.S. registration and follow Section 4(a)(2) of the Securities Act.

The Bitcoin treasury initiative will be managed and advised by Swan Bitcoin, which will handle the execution and planning of the Bitcoin acquisition process. This move reflects a growing interest among technology companies in adopting crypto-based financial strategies. The initiative is expected to close by early July, pending shareholder approval. Lead placement agents include Northland Capital Markets and B. Riley Securities, with Yorkville Securities also participating. Legal advisory is provided by Lowenstein Sandler, ARCHERS, and Goodwin Procter.

Sequans Communications emphasized that its core 4G and 5G IoT roadmap remains unchanged. The company continues to support global IoT applications through LTE-M, NB-IoT, and 5G platforms. These solutions remain central to its strategy, with enhancements in power efficiency and network scalability. Sequans maintains global operations across the U.S., Europe, and Asia. The company seeks to balance treasury diversification with regulatory compliance and continued IoT innovation. Resale registration statements will be filed as part of investor agreements.

CEO Georges Karam stated, "Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment." This initiative is seen as a solid vote on Bitcoin's potential as a valuable asset, aligning with rising institutional Bitcoin adoption trends initiated by other major companies. Market observers are keen on the potential results, with institutional interest generating a noteworthy confidence boost in Bitcoin. There have been no remarks from major crypto leaders or regulatory bodies at this time.

As of June 23, 2025, Bitcoin (BTC) trades at $102,019.08 with a market cap of $2.03 trillion. BTC holds a 64.76% market dominance. Notably, BTC's price has risen by 16.06% over 90 days, albeit with recent short-term declines. This strong institutional adoption, echoing Sequans' current financial move, potentially boosts market confidence. Coincu's research highlights the alignment with industry trends in Bitcoin reserves, suggesting this could positively impact Bitcoin's stability as more institutions adopt similar strategies. Potential regulatory scrutiny could arise, though balanced against advancing financial technology adoption.