Sequans Shares Surge 28.7% to $5.02 on Market Activity

Sequans (SQNS) shares surged 28.7% to $5.02, a $1.12 gain in value, driven by heightened investor interest and market optimism. This significant increase reflects a positive market sentiment towards the company.

Sequans Communications (SQNS) shares surged 28.7% to $5.02 on July 2, 2025, a $1.12 gain in value, driven by heightened investor interest and market optimism. This significant increase reflects a positive market sentiment towards the company's bold move to shift its treasury strategy towards Bitcoin.

The chip company, known for its work in 5G and 4G IoT connectivity, announced a major shift in its financial strategy, raising $384 million through a mix of equity and debt offerings to fund Bitcoin purchases. Over 40 institutional investors supported the funding round, signaling strong backing for the move. This aggressive pivot positions Sequans as one of the latest tech companies embracing Bitcoin as a strategic hedge, following in the footsteps of MicroStrategy and Japan’s Metaplanet.

CEO Georges Karam believes Bitcoin's scarcity and decentralized model will bring long-term value. "We plan to start acquiring Bitcoin immediately," Karam stated, highlighting a long-term strategy to use both free cash flow and future capital raises to expand the company’s crypto holdings. Sequans has already structured the capital raise to support this move, selling over 139 million American Depository Shares (ADSs) and offering convertible debentures maturing in 2028.

The shift is not merely symbolic. Sequans has partnered with Swan Bitcoin for execution and custody, ensuring security and efficient execution. This model closely follows MicroStrategy's approach, which has managed its Bitcoin holdings with the help of established custody services to ensure protection against potential risks.

Despite a tough year, this strategic pivot could redefine Sequans’ financial future. Investors are watching closely as the chip company bets big on Bitcoin. The stock surge comes after a year of deep losses, with the stock down 50–56% year-to-date before this announcement. The sudden rebound suggests that the market sees the Bitcoin strategy as a potential game-changer, attracting new shareholders interested in the digital asset play.

Sequans is now part of a growing group of tech companies using Bitcoin as a financial anchor, betting that it will outperform fiat-based reserves over time. The next few quarters will reveal whether this strategy helps stabilize its operations—or adds a layer of risk investors aren’t prepared for.

References
[1] https://m.economictimes.com/news/international/us/sequans-stock-skyrockets-43-after-bold-bitcoin-bet-backed-by-wall-street-heavyweights/articleshow/122343389.cms
[2] https://thetradable.com/crypto/sequans-sqns-ditches-cash-for-bitcoin-in-384m-treasury-move-0