Sequans stock skyrockets 43% after bold Bitcoin bet backed by Wall Street heavyweights
Chip company Sequans Communications saw its stock price skyrocket by 43%, hitting a pre-market high of $1.81, after it announced a bold new shift in its financial strategy—moving into Bitcoin as a treasury reserve asset. The move, part of a broader effort to improve financial stability and long-term value, has caught the attention of both investors and the broader tech and crypto communities.
The chipmaker, known for its work in 5G and 4G IoT connectivity, revealed it had raised $384 million through a mix of equity and debt offerings, signaling strong backing from over 40 institutional investors. These funds are being directed toward Bitcoin purchases and other governance-related requirements tied to the offering. This aggressive pivot positions Sequans as one of the latest tech companies embracing Bitcoin as a strategic hedge, similar to the strategies previously adopted by MicroStrategy and Japan's Metaplanet.
Why did Sequans stock skyrocket 43%?
Sequans Communications (SQNS) surged over 40% after announcing a bold move: allocating a massive $384 million to build a Bitcoin treasury. This included $195 million in equity and $189 million in convertible debt. The move mimics crypto-forward strategies like those of MicroStrategy, but it's rare for a small-cap semiconductor company.
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Why is Sequans Communications betting big on Bitcoin?
According to CEO Georges Karam, the company sees Bitcoin's scarcity and decentralized nature as valuable traits for protecting shareholder value in uncertain macroeconomic conditions. '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.
The shift is not merely symbolic. Sequans has already structured the capital raise to support it. The company sold over 139 million American Depository Shares (ADSs), along with secured convertible debentures maturing in 2028. Additional common stock warrants were offered at $1.40 per ADS, which, if fully exercised, could bring in another $57.6 million.
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How has Sequans stock performed recently?
Stock surge
: SQNS jumped over
43%
intraday on July 8, 2025.
Year-to-date
: Despite the recent jump, the stock is still
down 50–56% YTD
, reflecting deep losses from earlier in the year.
Pre-market boost
: The news triggered early trading spikes, making it one of the day's top NYSE performers.
What's driving investor interest?
Bitcoin hedge
: CEO Georges Karam called Bitcoin a hedge against inflation and a long-term store of value.
Institutional backing
: Over 40 institutional investors supported the funding round.
Custody strategy
: Swan Bitcoin will handle treasury custody and execution.
Trend following
: Sequans joins companies like MicroStrategy and Marathon in adding Bitcoin to their balance sheets.
What role will Swan Bitcoin play in Sequans' crypto transition?
To ensure security and efficient execution, Sequans has partnered with Swan Bitcoin, a well-known platform offering institutional Bitcoin custody and execution services. This partnership brings institutional-grade handling of assets and ensures regulatory compliance during the transition.
This model closely follows how MicroStrategy has managed its Bitcoin holdings—executing large-scale buys with the help of established custody services to ensure protection against potential risks like fraud, cyberattacks, or market slippage.
How are Sequans' financials looking?
Q4 2024
:
Revenue:
$11 million
Gross margin:
~68%
Net loss:
$2.7 million
(–$0.11/ADS)
Q1 2025
:
Revenue:
$8.1 million
, up 34% YoY
Sequential decline: –27% vs Q4
Net loss:
$7.3 million
(–$0.29/ADS)
Full-year 2024
:
Revenue:
$36.8 million
Gross margin:
~75%
Non-GAAP net profit:
$57 million
How are investors reacting to this aggressive new direction?
Investor sentiment turned sharply positive, with SQNS stock jumping 43% in just one day. Despite this massive surge, it's worth noting that the stock had been down 43.75% year-to-date before this announcement. The sudden rebound suggests that the market sees the Bitcoin strategy as a potential game-changer, possibly attracting new shareholders interested in the digital asset play.
At the same time, Bitcoin itself was trading at around $109,100.95, showing a 1.13% uptick—though its movement wasn't directly correlated to Sequans' jump. Still, investor enthusiasm clearly leaned in favor of the company's bold step.
Is Sequans trying to follow MicroStrategy's Bitcoin playbook?
While not identical, Sequans' new strategy does closely resemble what MicroStrategy's Michael Saylor did—transforming a tech company into a Bitcoin-heavy treasury vehicle. With rising concerns over global debt, currency debasement, and inflation, companies are increasingly looking to Bitcoin as a hedge.
However, Sequans is also continuing to operate in its core business—semiconductors for 5G and IoT devices—and will use revenue from that segment to continue purchasing more Bitcoin over time. That dual approach may help balance risk between its hardware business and digital asset exposure.
What are the risks and rewards of holding Bitcoin on a corporate balance sheet?
Bitcoin remains a volatile and unpredictable asset, and holding it on a company's balance sheet isn't without risk. Regulatory scrutiny, sudden price swings, and governance complexity are all concerns. Still, companies like Sequans argue that the upside in long-term value outweighs the short-term noise.
With this move, Sequans has now entered a small but 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.
What's in the pipeline?
Design wins
: Over
$250–400 million
in potential revenue from new product deals expected to mature in 2025–2026.
Core focus areas
: Smart metering, e-health, industrial IoT, and telematics.
Product roadmap
: Sequans is progressing in 5G NR RedCap and eRedCap technologies.
Long-term bet
: The company is also exploring early 6G and AI-driven communications solutions.
How big is the market opportunity?
IoT market
: Projected to reach
$1.1 trillion by 2026
, growing at 25% CAGR.
Government funding
: Potential upside from subsidies and contracts in the US and Asia-Pacific regions.
What are the risks?
Risk Area
Description
Bitcoin volatility
Rapid price changes could inflate or slash treasury value.
Regulatory exposure
Crypto-related regulations may affect treasury strategy.
NYSE compliance
Sequans is still under pressure due to low market cap and share price.
Dilution risk
Warrants and convertible notes could dilute existing shareholders.
What do analysts expect next?
Buy ratings
: 85% of analysts have a "Buy" rating on SQNS.
Price target
: Average 12-month forecast is
$7.50
, implying over
220% upside
.
Optimistic outlook
: One analyst sees potential gains of
+424%
.
Revenue forecast
: 2025 revenue projected to flatten (~$36M), but
expected to double in 2026
.
EPS outlook
: Still negative in 2025 (–$0.19), with improvement likely in 2026.
Is Sequans setting a new trend in the chip sector?
The chipmaker's bold leap into Bitcoin has certainly made waves. It reflects a broader trend of corporate adoption of cryptocurrency as a strategic reserve. While other chip companies remain focused on AI and infrastructure, Sequans is choosing to align with digital assets—potentially signaling a new direction for financial innovation in the semiconductor industry.
For now, the 43% surge in SQNS stock speaks volumes. Investors appear willing to give the company's Bitcoin gamble a shot. Whether that confidence will hold depends on both the crypto market's performance and Sequans' ability to balance its tech operations with this new financial strategy.
Is Sequans a smart bet?
Sequans is pivoting into a
high-risk, high-reward strategy
by combining its core semiconductor business with Bitcoin investments. It's a unique hybrid play—part IoT tech stock, part crypto treasury. For risk-tolerant investors, the combination of undervaluation, strategic design wins, and crypto upside could unlock significant value over the next 12–18 months.
FAQs:
Q1: Why did
Sequans Communications stock jump
43%?
Sequans stock jumped after it announced a Bitcoin-focused treasury strategy and raised $384 million.
Q2: Is Sequans Communications now investing in Bitcoin?
Yes, Sequans is using new capital to buy Bitcoin as part of its treasury reserve plan.
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