French Chipmaker Sequans | Plans for a 100,000 BTC Treasury

Sequans Communications (NYSE: SQNS) is making headlines after announcing a plan to sell up to $200M of shares through an at-the-market (ATM) equity program — with the proceeds to be used to buy bitcoin.

The Paris-based chipmaker has one of the boldest treasury strategies in Europe: a goal to hold 100,000 BTC by 2030. If achieved, that would be nearly 0.5% of all the bitcoin that will ever exist.

Sequans currently holds 3,171 BTC, worth around $350 million, making it the second-largest corporate bitcoin holder in Europe after Germany’s Bitcoin Group SE, which holds over 3,605 BTC, according to BitcoinTreasuries.

With the new $200 million equity program, the company could buy around 1,800 more BTC at current prices, bringing its holdings to around 5,000 BTC — the same as U.S.-based Semler Scientific.

CEO Georges Karam said it’s part of building a long-term treasury foundation. “We intend to use it judiciously to optimize our treasury, increase Bitcoin per share, and deliver long-term value to shareholders,” he said in the recent company announcement.

The offering will allow Sequans to issue American Depositary Shares (ADSs) at its discretion, subject to market conditions. ADSs allow U.S. investors to trade shares of foreign companies on U.S. exchanges.

This isn’t the first time Sequans has raised funds for bitcoin.

In July, the company raised $189M through secured convertible debentures and warrants, bringing its total recent fundraising to around $376 million. With the new $200 million plan, Sequans will have raised nearly $576 million for its bitcoin treasury strategy.

Industry insiders say it’s a big bet. On one hand, it puts Sequans at the forefront of corporate bitcoin adoption. On the other, it exposes the company — and its shareholders — to the risks of bitcoin’s volatility.

Analysts are divided on this decision. Raising equity to buy bitcoin dilutes existing shareholders but also offers long-term upside. This way, shareholders accept dilution in hopes of long-term profit from bitcoin’s growth. Still, the strategy requires discipline.

Firms with lower treasuries can innovate using structured financing, options strategies, or BTC-backed deals to accumulate effectively.

Critics argue that unlike Strategy, the U.S. company that pioneered this model, Sequans doesn’t have a billion-dollar war chest or enough margins to weather prolonged downturns.

If bitcoin goes up, Sequans wins; if it goes down, investors lose for effectively backing a bitcoin proxy instead of a semiconductor company.

Sequans wants to be not just a chipmaker but a bitcoin proxy stock. Whether this works out will depend on bitcoin’s path over the next few years.

CEO Georges Karam says it’s a long-term play. He notes that their strategy shows strong conviction in bitcoin as an asset and a long-term investment.