Sequans Partners with Swan Bitcoin to Create $384 Million Reserve

$384 Million Bitcoin Reserve Initiative

Sequans, which currently has a market capitalization of around $40 million, announced it has raised $384 million through a private placement, including $195 million in shares and $189 million in convertible bonds. The proceeds will be used to accumulate Bitcoin, with support from Swan Bitcoin, a provider of cryptocurrency reserve management solutions. CEO Georges Karam stressed that the strategy reflects the belief in Bitcoin as a leading asset that enhances financial resilience and delivers long-term shareholder value. The offering is expected to be completed on July 1, subject to shareholder approval on June 30.

However, the announcement has been controversial as Sequans shares fell 12% to $1.62 in trading today, reflecting investor skepticism about the feasibility of the plan.

Tech Companies Are Accumulating Bitcoin

The cryptocurrency market is booming in 2025, with a global capitalization of $3.5 trillion, while Bitcoin and Ethereum ETFs attracted more than $50 billion in institutional inflows in Q1. The trend of publicly traded companies accumulating Bitcoin as a store of wealth began with MicroStrategy and has now spread to names like Semler Scientific and Metaplanet. Sequans, which had $8.1 million in IoT revenue in Q1 2025 but a net loss of $7.3 million, is looking to diversify its financial portfolio amid fierce competition in the semiconductor market.

The move also comes as Sequans receives a warning from the NYSE for a market cap below $50 million, forcing the company to take action to avoid delisting. The partnership with Swan Bitcoin, a specialist in Bitcoin asset management, represents an effort to leverage its expertise to execute this strategy.

Evaluation and Conclusion

Sequans’ $384 million Bitcoin reserve initiative in partnership with Swan Bitcoin is a bold move that reflects confidence in Bitcoin’s potential in a volatile financial landscape. While it presents an opportunity for value appreciation and image enhancement, the risks of market reaction and Sequans’ weak financial position cannot be overlooked. In a vibrant cryptocurrency market, this could be a boost for Bitcoin, but it is also a warning about uncertainty. Can Sequans turn the challenge into an opportunity? Stay tuned for more updates!

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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