Sequans Soars Over 19%—What’s Driving the Bitcoin-Fueled Surge?

• SQNS shares skyrocketed 19.49% to $4.66, hitting a 52-week high of $5.50
• Company announced $384M Bitcoin treasury initiative to diversify assets
• Volume surged to 17.84M shares, 73.6% turnover rate signals institutional momentum
• Sector peers like Qualcomm (QCOM) lagged, down -0.4%

Today’s meteoric rise thrust Sequans into the spotlight as its bold cryptocurrency strategy defied a lukewarm semiconductor sector. The stock’s $1.12 intraday gain erased years of underperformance, with traders focusing on its novel financial engineering rather than traditional chip fundamentals.

Bitcoin Treasury Gambit Ignites Speculative Frenzy
The catalyst was Sequans’ announcement of a $384M Bitcoin treasury funded through private placements. This bold move positions the 5G/IoT chipmaker as a pioneer in digital asset integration, attracting speculative capital chasing both semiconductor innovation and crypto exposure. Investors are pricing in potential Bitcoin appreciation gains while signaling confidence in Sequans’ ability to navigate regulatory risks. The strategy’s novelty created a FOMO-driven buying wave, with technicals confirming a breakout from multiyear consolidation.

Leverage Bitcoin Momentum with SQNS Calls
• RSI 79.52 (overbought extreme)
• MACD 0.153 vs Signal -0.028 (bullish crossover)
• Bollinger Bands Upper: $2.91, Middle: $1.80 (price trades 158% above mean)
• 200-day MA $2.33 (bullish breakout confirmed)

Bulls should focus on the $4.50-$5.00 resistance zone. Two standout options:

SQNS20251017C5 (Oct 17 $5 Call)
- IV 107.4%, Leverage 5.13%, Delta 0.563
- Theta -0.0059, Gamma 0.152
- With 292k turnover, this is the most liquid bullish option. A 5% move to $4.89 creates 73% premium upside.

SQNS20250815C5 (Aug 15 $5 Call)
- IV 162.9%, Leverage 5.77%, Delta 0.544
- Theta -0.0151, Gamma 0.168
- Offers higher gamma sensitivity for volatility plays. Current bid-ask spread supports aggressive accumulation.

Trade Hook: Aggressive investors should layer into SQNS20251017C5 for October expiration, targeting Bitcoin-related catalysts. Exit if $5 resistance fails by mid-August.

Backtest Sequans Stock Performance
The backtest of SQNS's performance after a 19% intraday surge shows mixed results. While the 3-day win rate is high at 44.74%, the returns over longer periods such as 10 days and 30 days are negative, indicating that holding the position beyond the initial surge leads to underperformance. The maximum return during the backtest period was only -0.12%, which occurred on day 1, suggesting that the stock is more volatile than it is profitable in the short term.

SQNS at a Crossroads: Bitcoin Bet or Sector Headwinds?
The stock’s Bitcoin narrative faces two critical tests: sustaining institutional interest and semiconductor sector dynamics. While the crypto angle provides speculative upside, broader chip industry headwinds like China’s mature-node overcapacity (SMIC down 25% YTD) could cap gains. Monitor Qualcomm (QCOM)’s -0.4% underperformance as a sector barometer. Investors must decide: is this a fleeting crypto rally or a transformative shift? Bullish bets should target $6.00 resistance while watching Bitcoin price action. Action Alert: Fade the move if SQNS closes below $4.20 next week—a clear bearish divergence from crypto markets would signal speculative exhaustion.