- Sequans boosts its Bitcoin holdings to 2,317 BTC worth $270M, showing strong belief in BTC as a long-term store of value.
- The tech firm funds its Bitcoin buys using business profits, IP sales, and new capital, signaling a flexible long-term crypto strategy.
- By adopting Bitcoin as a treasury asset, Sequans is setting a bold example for Europe’s traditional tech sector to possibly follow.
Sequans Communications S.A. has deepened its Bitcoin commitment with a bold $150 million purchase of 1,264 BTC. This move brings its total holdings to 2,317 BTC, worth about $270 million. The average acquisition price now sits at $116,493 per coin. This acquisition follows a recent buy of 683 BTC worth $79 million.
The semiconductor firm, listed on the NYSE under ticker SQNS, continues to adopt Bitcoin as a core financial asset. The company is a first mover in the IoT semiconductor sector embracing Bitcoin at scale. This strategy aligns with its long-term goal of using BTC as a hedge against inflation and a store of value.
Strategic Accumulation of Bitcoin
Sequans applies a unique approach to growing its Bitcoin reserves. Besides profits from its core business, it uses cash from stock and debt offerings. Additionally, the company monetizes its intellectual property to fund further acquisitions. This diverse funding model gives it the flexibility to buy Bitcoin based on favorable market conditions.
Moreover, Sequans’ philosophy echoes that of MicroStrategy in the U.S., known for pioneering Bitcoin treasury adoption. However, Sequans’ move brings this concept to the European advanced electronics space. This shift could trigger interest among other tech players, both public and private.
Broader Implications for the Tech Sector
The adoption of Bitcoin as a treasury asset by Sequans is significant for the global technology industry. While fintech and mining firms have already embraced Bitcoin, its presence in the semiconductor sector is rare. Consequently, this could be the start of adoption within traditional tech companies.
However, risks remain. Sequans bought Bitcoin at prices above the 2024 all-time high and near strong resistance levels. Hence, market volatility could pose short-term challenges. Still, the firm appears confident in Bitcoin’s role within the digital economy.
Additionally, the company stated it will continue purchasing Bitcoin if market conditions allow. With a current BTC price of $117,970 and growing trading volume, this move appears well-timed. In the long run, Sequans is building dual value—through its tech innovation and strategic Bitcoin management.
