French semiconductor company Sequans Communications announced plans to raise approximately $384 million through private placements to fund a Bitcoin treasury.
Terms of Equity and Debt Placement
Sequans has reportedly entered into definitive agreements to raise approximately $195 million in equity and $189 million in secured convertible debentures. The total gross proceeds will amount to around $384 million, raised through two separate private placements: one for equity and one for debt.
The equity component involves selling approximately 1.39 billion ordinary shares at a combined price of $1.40 per American Depositary Share and warrant, equivalent to $0.14 per ordinary share and warrant. This tranche is expected to generate $195 million.
Company's Goals for Crypto Asset Expansion
According to Sequans CEO Georges Karam, the Bitcoin treasury strategy is seen as a long-term bet on the potential growth of digital assets. Karam stated, "Our bitcoin treasury strategy demonstrates our strong conviction in bitcoin as a premier asset and a compelling long-term investment." He added that the unique characteristics of Bitcoin will enhance financial resilience and deliver significant value to shareholders.
NYSE Compliance Issue and Crypto Collaboration
The announcement of funding comes shortly after Sequans received a compliance warning from the New York Stock Exchange. On June 5, 2025, it was noted that the company no longer met listing requirements due to its market capitalization falling below $50 million over a 30-day trading period. Sequans is required to submit a plan detailing how it intends to regain compliance within nine months.
In conclusion, Sequans Communications is embarking on a new strategy with Bitcoin while addressing compliance challenges with the NYSE.
