Sequans Redeems 50% of Convertible Debt Through Strategic Asset Reallocation
Sequans (NYSE: SQNS) redeemed 50% of the convertible debt issued July 7, 2025 by selling 970 BTC, reducing total outstanding debt from $189 million to $94.5 million. Bitcoin holdings fell from 3,234 BTC to 2,264 BTC, with a Bitcoin Net Asset Value estimated at ~$240 million. The company says the move lowers its debt-to-NAV ratio from 55% to 39%, removes certain debt covenant constraints, and is intended to boost the ADS buyback program while preserving long-term treasury optionality.
Sequans (NYSE: SQNS) ha rimborsato il 50% del debito convertibile emesso il 7 luglio 2025 vendendo 970 BTC, riducendo il debito totale in circolazione da $189 milioni a $94,5 milioni. Le partecipazioni in Bitcoin sono passate da 3.234 BTC a 2.264 BTC, con un valore patrimoniale netto in Bitcoin stimato a circa $240 milioni. L'azienda afferma che l'operazione abbassa il rapporto debito/NAV da 55% a 39%, elimina alcuni vincoli di covenante sul debito e ha l'obiettivo di stimolare il programma di riacquisto ADS mantenendo al contempo l'opzione di tesoreria a lungo termine.
Sequans (NYSE: SQNS) rescató el 50% de la deuda convertible emitida el 7 de julio de 2025 vendiendo 970 BTC, reduciendo la deuda total en circulación de $189 millones a $94,5 millones. Las participaciones en Bitcoin cayeron de 3,234 BTC a 2,264 BTC, con un valor neto de activo en Bitcoin estimado en aproximadamente $240 millones. La empresa dice que la operación reduce su relación deuda/NAV de 55% a 39%, elimina ciertas restricciones de convenio de deuda y tiene como objetivo impulsar el programa de recompra de ADS manteniendo la opción de tesorería a largo plazo.
Sequans (NYSE: SQNS)은 2025년 7월 7일 발행된 전환부채의 50%를 상환하기 위해 970 BTC를 매도했고, 총 미상환 부채를 $189백만에서 $94.5백만으로 감소시켰습니다. 비트코인 보유량은 3,234 BTC에서 2,264 BTC로 감소했고, 비트코인 순자산가치(NAV)는 약 $240백만으로 추정됩니다. 회사는 이 조치가 부채- NAV 비율을 55%에서 39%로 낮추고, 특정 부채 covenants 제약을 제거하며 ADS 자사주 매입 프로그램을 촉진하고 장기 보유 현금의 옵션성을 유지하는 것을 목표로 한다고 말합니다.
Sequans (NYSE: SQNS) a racheté 50% de la dette convertible émise le 7 juillet 2025 en vendant 970 BTC, réduisant la dette totale en circulation de $189 millions à $94,5 millions. Les avoirs en Bitcoin sont passés de 3 234 BTC à 2 264 BTC, avec une valeur nette d'inventaire en Bitcoin estimée à environ $240 millions. L'entreprise indique que l'opération réduit son ratio dette/NAV de 55% à 39%, supprime certaines contraintes de covenants de la dette et vise à stimuler le programme de rachat d'ADS tout en préservant l'option de trésorerie à long terme.
Sequans (NYSE: SQNS) hat 50% der am 7. Juli 2025 emittierten wandelbaren Anleihen durch den Verkauf von 970 BTC zurückgezahlt, wodurch sich die ausstehende Gesamtverschuldung von $189 Millionen auf $94,5 Millionen reduziert hat. Die Bitcoin-Bestände sanken von 3.234 BTC auf 2.264 BTC, mit einem geschätzten Bitcoin-Nettovermögen (NAV) von ca. $240 Millionen. Das Unternehmen sagt, dass diese Maßnahme das Verhältnis von Verschuldung zu NAV von 55% auf 39% senkt, bestimmte Schulden-Covenant-Beschränkungen entfernt und darauf abzielt, das ADS-Backbuy-Programm zu stärken, während gleichzeitig die langfristige Treasury-Optionalität erhalten bleibt.
Sequans (NYSE: SQNS) سددت 50% من الدين القابل للتحويل الصادر في 7 يوليو 2025 ببيع 970 BTC، مما خفّض الدين الإجمالي القائم من $189 مليوناً إلى $94.5 مليون. انخفضت حيازة البيتكوين من 3,234 BTC إلى 2,264 BTC، مع تقدير صافي قيمة أصول البيتكوين بنحو $240 مليون. تقول الشركة إن هذه الخطوة تخفّض نسبة الدين إلى NAV من 55% إلى 39%، وتزيل بعض قيود covenants الدين، وتهدف إلى تعزيز برنامج إعادة شراء ADS مع الحفاظ على خيارية الخزينة على المدى الطويل.
- Debt reduced from $189M to $94.5M
- 970 BTC sold to fund the redemption
- Debt-to-NAV ratio improved from 55% to 39%
- Bitcoin NAV estimated at ~$240M supports treasury value
- Enhances buyback capacity and removes certain debt covenants
- Bitcoin holdings declined from 3,234 BTC to 2,264 BTC (970 BTC sold)
Insights
Sequans reduced half its convertible debt by selling Bitcoin, lowering leverage and creating more buyback and capital‑markets optionality.
By redeeming 50% of the convertible debt issued on
The move preserves long‑term Bitcoin exposure while converting part of the crypto reserve into liability reduction and buyback capacity. Key dependencies include realized Bitcoin sale proceeds and the remaining Bitcoin valuation; any material change in market prices will alter the stated NAV and the effective leverage ratio. Monitor the pace and size of the ADS buyback program, any issuance of preferred shares, and reported yield generation plans on Bitcoin over the next 3–12 months to judge whether the company sustains lower leverage and expands shareholder returns.
Opportunistically leverages Bitcoin holdings to enhance financial flexibility, reduce Debt-to-NAV ratio, and boost buyback capacity while preserving long-term treasury optionality
Paris, France--(Newsfile Corp. - November 4, 2025) - Sequans Communications S.A. (NYSE: SQNS), a pioneer in adopting Bitcoin as its primary treasury reserve asset and a leading provider of cellular IoT semiconductor solutions, today announced the redemption of
As a result of this transaction, Sequans reduces its total outstanding debt from
In addition, this deleveraging is expected to boost Sequans' previously announced ADS buyback program with the target to leverage current market conditions to increase the Company's Bitcoin per share metrics, reinforcing its commitment to delivering long-term value for its shareholders.
"Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged," said Georges Karam, CEO of Sequans. "This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions. It strengthens our financial foundation and removes certain debt covenant constraints, enabling us to pursue a wider set of strategic initiatives to prudently develop and grow our treasury, with Bitcoin as a long-term strategic reserve asset."
As a result of the Company's enhanced balance sheet flexibility, Sequans is now better positioned to pursue future capital markets initiatives, including the ADS buyback program, the potential issuance of preferred shares and yield generation on a portion of its Bitcoin holdings. Sequans remains focused on maximizing long-term shareholders value through disciplined and responsible actions.
About Sequans
Sequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) as well as a pioneer in Bitcoin treasury. Sequans views Bitcoin as a long-term investment and intends to strategically accumulate it as its primary treasury reserve asset. The Company's approach involves acquiring and holding Bitcoin using net proceeds from equity and debt issuances — executed from time to time based on market conditions — as well as cash generated from operations and intellectual property monetization.
Sequans' engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications - including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. The company also provides advanced design services and technology licensing. Sequans management believes the combination of a strategic Bitcoin reserve and deep focus on semiconductor innovation positions the company for long-term value creation.
Founded in 2003, Sequans is headquartered in France and operates globally, with offices in the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.
Visit Sequans at sequans.com and follow us on LinkedIn and X.
Contacts
Sequans investor relations:
David Hanover/ Rob Kelly, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.com
Sequans media relations:
Linda Bouvet (France), +33 170721600, media@sequans.com
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including, but not limited to, the Company's bitcoin treasury strategy and potential capital markets initiatives, including ADS repurchases, the potential issuance of preferred shares and yield generation on a portion of its Bitcoin holdings. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "committed to", "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors it believes appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.
Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our ability to successfully implement our Bitcoin treasury strategy and potential adverse reactions or changes to business relationships resulting from the implementation of the Bitcoin treasury initiative. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, including tariffs and trade wars. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2024, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273105
FAQ
What did Sequans (SQNS) announce on November 4, 2025 about convertible debt?
How many Bitcoin did Sequans sell to redeem SQNS convertible debt on November 4, 2025?
How did the SQNS debt-to-NAV ratio change after the November 4, 2025 transaction?
What are Sequans' remaining Bitcoin holdings after the November 4, 2025 sale?
Will the SQNS debt redemption affect the company's ADS buyback program?
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