tl;dr
Sequans Communications, a Paris-based semiconductor company listed on NYSE, plans to raise up to $200 million through an at-the-market equity program to buy Bitcoin as part of its long-term treasury strategy. This follows a recent $189 million raise via convertible debentures and warrants, totaling ...
Sequans Communications (NYSE: SQNS), a Paris-based semiconductor company listed on the New York Stock Exchange, has filed to raise up to $200 million through an at-the-market equity program. The funds will primarily be used to purchase Bitcoin as part of its long-term treasury strategy. This initiative marks the first phase of Sequans' efforts to establish a solid treasury foundation. CEO Dr. Georges Karam emphasized using the funds judiciously to optimize the treasury.
In addition to this equity program, Sequans raised $189 million in July via secured convertible debentures and warrants, bringing its recent total financing to roughly $376 million. The company currently holds over 3,000 Bitcoin, valued at approximately $331 million at current prices, positioning it as one of Europe's largest corporate Bitcoin holders, second only to Germany's Bitcoin Group SE. Sequans aims to increase its Bitcoin holdings ambitiously to reach 100,000 by 2030.
Dan Dadybayo, research and strategy lead at Unstoppable Wallet, explains that raising equity to buy Bitcoin dilutes existing shareholders and ties the company’s valuation more directly to Bitcoin’s volatility. However, he notes the approach depends heavily on execution. Equity-funded Bitcoin purchases provide leveraged exposure, where shareholders trade dilution for long-term alignment with Bitcoin’s growth potential.
Dadybayo also points out that smaller firms might innovate and scale Bitcoin accumulation through structured financing, options strategies, or BTC-backed deals, stressing that such models need to be tailored rather than copied outright. The primary risk lies not in short-term price swings but in whether the company can maintain operational discipline and avoid overextension during market downturns. While Sequans can acquire Bitcoin at scale relative to its size, it faces challenges due to its limited financial cushion to absorb prolonged downturns without causing shareholder distress.