French Semiconductor Company Sequans Aims to Raise $200 Million Through Share Offering to Establish Bitcoin Reserve

Sequans Communications (NYSE: SQNS), a semiconductor business based in Paris and listed on the NYSE, has applied to raise up to $200 million via an at-the-market equity program, primarily intended for Bitcoin acquisitions as part of its treasury strategy.

This initiative marks the initial stage of Sequans’ efforts to build its treasury infrastructure. Sequans aims to “use it wisely to enhance the treasury,” stated CEO Dr. Georges Karam in a press release on Tuesday.

Its latest SEC filing permits the company to issue American Depositary Shares whenever it chooses. ADSs are certificates enabling U.S. investors to trade shares of foreign firms on American markets.

In July, Sequans also secured $189 million via secured convertible debentures and warrants, totaling almost $376 million in recent financing.

Currently, Sequans possesses over 3,000 Bitcoin, valued at approximately $331 million at present, making it one of Europe’s largest corporate Bitcoin holders, second only to Germany’s Bitcoin Group SE. The company has a bold goal of achieving 100,000 by 2030.

‘Scalable if Customized’

Raising equity for Bitcoin purchases “does dilute existing shareholders, making the company’s value more directly linked to Bitcoin’s volatility,” Dan Dadybayo, research lead at Unstoppable Wallet, informed Decrypt.

However, the outcomes heavily rely on execution, he contends.

“Equity-financed BTC acquisitions resemble leveraged exposure rather than speculative bets: shareholders accept dilution in exchange for aligning with Bitcoin’s long-term growth,” he noted.

Yet, “smaller companies can innovate using structured financing, options tactics, or BTC-backed agreements to effectively accumulate Bitcoin. The model isn’t straightforward, but it’s scalable if customized,” Dadybayo added.

Dadybayo reiterates that the concern isn’t about short-term price fluctuations, but rather whether the company can uphold operational discipline and avoid excess during downturns.

While Sequans can “acquire BTC at scale relative to its size,” he points out that it lacks “the financial buffer to weather extended downturns without affecting shareholders.”