Sequans Communications Secures $384 Million to Establish Bitcoin Treasury Amid NYSE Compliance Challenges

On June 23, 2025, Sequans Communications made a significant announcement regarding a $384 million fundraising initiative to launch a Bitcoin treasury, contingent upon shareholder approval. This strategic pivot marks the company’s venture beyond its traditional business in 5G and 4G IoT semiconductors. The announcement comes amid mounting concerns for Sequans as they are at risk of being delisted from the NYSE due to a declining market capitalization.

According to the company’s CEO, Georges Karam, “We believe bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders.” The capital raise is structured as approximately $195 million in equity securities along with $189 million in convertible secured debentures, intended to foster the establishment of the Bitcoin treasury.

To aid the execution of this initiative, Sequans plans to collaborate with Swan Bitcoin, a prominent U.S.-based Bitcoin financial services firm. However, the success of this ambitious plan hinges on shareholder approval, with the decision set to be made during a meeting scheduled before June 30. If approved, the fundraising round is expected to be completed around July 1, subject to the fulfillment of customary conditions.

The impetus for this move is also closely related to a recent notice received by Sequans from the NYSE, stating that their average global market cap had fallen below the required $50 million threshold for a consecutive 30 trading-day period. This dual compliance issue, encompassing both market cap and stockholders’ equity, has initiated a formal warning to the company.

The NYSE has granted Sequans a 90-day period to formulate a detailed business plan aimed at regaining compliance with listing standards. During this “Market Cap Cure Period,” the company’s American Depositary Shares (ADSs) can continue to trade on the NYSE, provided other listing requirements are met. This new initiative to establish a Bitcoin treasury aligns with the company’s goal to enhance its market cap and restore compliance with NYSE regulations.

In conclusion, Sequans Communications is attempting a bold shift in strategy by launching a Bitcoin treasury designed to improve its financial standing while navigating the challenges posed by NYSE listing standards. If successful, this venture could not only secure its listing but also promise substantial future returns for shareholders as the world of cryptocurrency continues to evolve.

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