Core Viewpoint - Sequans Communications has successfully repurchased 755,349 American Depositary Shares (ADSs), representing approximately 5% of outstanding ADSs, as part of its ongoing strategy to enhance shareholder value through disciplined capital allocation [1][2][4] Group 1: ADS Repurchase Program - The repurchases were executed at an average price of $6.40 per ADS, resulting in a current outstanding ADS count of approximately 15.2 million, or 16.3 million including potential pre-funded warrants [2] - The reduction in outstanding ADSs has generated a 4.4% yield in Bitcoin per outstanding ADS since the company's earnings call on November 4, 2025, showcasing the effectiveness of its capital allocation strategy [2][3] Group 2: Funding and Strategy - The ADS repurchases were funded through proceeds from the sale of Bitcoin and operational funds, indicating a strategic approach to enhance Bitcoin per share [3] - The company aims to continue executing share repurchases at prices below net asset value (NAV) per ADS to create additional value for shareholders [3][4] Group 3: Management's Perspective - The CEO of Sequans, Dr. Georges Karam, emphasized that the current digital asset market conditions present an opportunity to strengthen the balance sheet and advance the Bitcoin Treasury strategy [4] - The company remains committed to reducing debt and executing share repurchases to reinforce its growth strategy and deliver value to shareholders [4] Group 4: Company Overview - Sequans Communications is a leading fabless semiconductor company specializing in 4G/5G cellular technology for IoT and is recognized as a pioneer in Bitcoin Treasury [8] - The company views Bitcoin as a long-term investment and plans to accumulate it as its primary treasury reserve asset, utilizing proceeds from equity and debt issuances as well as operational cash flow [8][9]

New York Stock Exchange-listed chipmaker @Sequans has sold 970 Bitcoin to pay off debt just four months after pivoting to a digital asset treasury strategy, the company announced on Tuesday. https://t.co/6VluPzlTIy ...

Bitcoin Holdings - Sequans Communications 出售 970 比特币，用于偿还 9450 万美元可转换债券 [1] - Sequans Communications 的比特币储备减少至 2264 BTC [1] - Sequans Communications 成为首家显著减少比特币持有量的上市比特币储备公司 [1]

Core Insights - Sequans, a chipmaker listed on the New York Stock Exchange, sold 970 Bitcoin to reduce its debt by 50%, from $189 million to $94.5 million, just four months after adopting a digital asset treasury strategy [1][2][3] Company Strategy - The company has reduced its Bitcoin holdings from 3,234 BTC to 2,264 BTC, with the remaining assets valued at approximately $228 million [1] - Sequans' CEO emphasized that the Bitcoin treasury strategy remains unchanged and that the sale was a tactical decision to unlock shareholder value under current market conditions [2][3] Market Context - Sequans' stock price fell by 16.6% following the announcement of the Bitcoin sale [2] - The company aims to strengthen its financial foundation and remove debt covenant constraints, allowing for broader strategic initiatives in developing its treasury with Bitcoin as a long-term reserve asset [3] Industry Trends - Sequans is among over 200 publicly traded companies adopting a similar digital asset treasury approach, inspired by Strategy (formerly MicroStrategy), which has invested around $47.4 billion in Bitcoin [3][4] - Other companies are also purchasing Bitcoin and other cryptocurrencies to enhance their stock prices, although some experts caution about the inherent risks of such investments [5] Performance Metrics - Strategy reported $2.8 billion in profits for its third quarter, but analysts noted a decline in its multiple to Net Asset Value (mNAV), indicating a potential decrease in the premium of its shares relative to its crypto holdings [6]

Financial Data and Key Metrics Changes - Total revenues in Q3 2025 were $4.3 million, a decrease of 47.3% compared to Q2 2025, primarily due to the end of licensing revenues from Qualcomm [19] - Gross margin was 40.9% in Q3, down from 64.4% in Q2, reflecting a lower mix of high-margin licensing revenue [19] - Operating loss was $20.4 million in Q3, compared to an operating loss of $8.7 million in Q2 2025 [20] - Net loss for Q3 was $6.7 million, or $0.48 per diluted ADS, compared to a net loss of $9.1 million, or a loss of $3.59 per diluted ADS in Q2 2025 [21] - Cash and cash equivalents at September 30, 2025, totaled $13.4 million, down from $41.6 million at June 30, 2025 [21] Business Line Data and Key Metrics Changes - The IoT business pipeline remains healthy, representing about $550 million in potential three-year product revenue across 4G and RF product lines [10] - In Q3, the company won six new projects, with around $300 million of the pipeline being design win projects, a 20% increase from the last reported figure [10] - Q3 product revenue was impacted by minor delays, with expectations for Q4 product revenue to exceed $6 million [15] Market Data and Key Metrics Changes - The company holds 3,234 Bitcoin with a market value of $365.6 million, all pledged as security for $189 million of convertible debt issued in July [22] - Following a recent amendment of the debt agreement, 1,617 Bitcoin are being released from the pledge, and the company has sold 970 Bitcoin to reimburse half of the debt [22] Company Strategy and Development Direction - The company is committed to its Bitcoin treasury strategy and has proactively reduced its debt by 50% through a tactical sale of a portion of its Bitcoin holdings [5][6] - The goal is to unlock shareholder value and position the company better for future financing options, including preferred shares [7][9] - The IoT business is expected to grow and generate positive cash flow in 2026, with a potential 50% year-over-year growth into 2027 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ramp-up of product revenue in Q4, despite challenges faced in Q3 [15][19] - The company aims to limit cash burn in 2026 to reach break-even by Q4, implementing a 20% cost reduction program across functions [18] - Management is exploring strategic alternatives for the IoT business to enhance overall value and cash flow generation [18] Other Important Information - The company is shifting from an opportunistic approach to a proactive go-to-market strategy for its IP portfolio, aiming to maximize customer reach and accelerate monetization [16] - The company has launched a new IP initiative and is in discussions for several licensing deals, with potential revenues from $3 million to $20 million [32] Q&A Session Summary Question: Were there any licensing or service revenues in Q3? - The revenue was about two-thirds product and one-third licensing and services in Q3 [26] Question: How aggressive will the company be on the buyback? - The company plans to be as aggressive as needed, considering the current stock price relative to net asset value [25] Question: What is the expected revenue for Q4? - The company is confident in achieving $7 million in revenue for Q4, based on backlog and secured orders [35] Question: What are the strategic alternatives being considered for the IoT business? - The company is exploring partnerships and other strategic options to enhance the value of its IoT business [18][33] Question: What is the timeline for the preferred shares issuance? - There is no specific timeline for issuing preferred shares, as it depends on negotiations and market conditions [45]

Financial Data and Key Metrics Changes - Total revenues in Q3 2025 were $4.3 million, a decrease of 47.3% compared to Q2 2025 due to the conclusion of licensing revenues from Qualcomm [25] - Gross margin was 40.9% in Q3, down from 64.4% in Q2, reflecting a lower mix of high-margin licensing revenue [25] - Operating loss was $20.4 million in Q3, compared to an operating loss of $8.7 million in Q2 2025 [26] - Net loss for Q3 was $6.7 million or $0.48 per diluted ADS, compared to a net loss of $9.1 million or $3.59 per diluted ADS in Q2 2025 [27] - Cash and cash equivalents at September 30, 2025, totaled $13.4 million, down from $41.6 million at June 30, 2025 [27] Business Line Data and Key Metrics Changes - The IoT business pipeline represents about $550 million in potential revenue over three years, with a 20% increase in design win projects compared to the last reported figure [14] - In Q3, three design win projects transitioned to production, with expectations to add five more in Q4 [15] - The company anticipates entering 2026 with over 45% of design win projects generating revenue [15] Market Data and Key Metrics Changes - The company holds 3,234 Bitcoin with a market value of $365.6 million, all pledged as security for $189 million of convertible debt issued in July [27] - The company has reduced its convertible debt by half through a tactical sale of Bitcoin holdings, lowering the debt to NAV ratio closer to 35% [8][12] Company Strategy and Development Direction - The company is committed to its Bitcoin treasury strategy and has taken proactive steps to reduce debt and enhance flexibility for future financing [6][8] - A disciplined and opportunistic approach to Bitcoin accumulation will continue, with ongoing purchases funded by various means including operating cash flow [11] - The company is exploring strategic alternatives for its IoT business to enhance value and accelerate the path to breakeven [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Q4 revenue exceeding $7 million, with product revenue expected to exceed $6 million and services/IP licensing contributing around $1 million [20] - The company aims to limit cash burn in 2026 to reach breakeven by Q4, implementing a 20% cost reduction program across functions [23] - Management highlighted the importance of the design win pipeline and the potential for significant revenue growth in 2026 and beyond [15][21] Other Important Information - The company has launched a new IP initiative and is shifting to a proactive go-to-market strategy for licensing its IP portfolio [22] - The company plans to execute an ADS buyback program as soon as possible, given the current share price [10][12] Q&A Session Summary Question: Were there any licensing or service revenues in Q3? - The company reported approximately $1.3 million in licensing and services revenue in Q3, with product revenues being the primary focus [37] Question: How aggressive will the company be on the buyback? - The company plans to be as aggressive as needed, with a board resolution in place for the buyback program [34][36] Question: What is the confidence level in achieving $7 million in Q4 revenue? - Management expressed confidence in the $7 million target, citing secured backlog and historical performance of customers [59][61] Question: What are the strategic priorities beyond the ATM program and share buybacks? - The company is considering various strategic initiatives, including generating yield on Bitcoin and exploring partnerships for the IoT business [70][78]

Core Insights - Sequans Communications reported preliminary financial results for Q3 2025, showing significant declines in revenue and profitability compared to previous quarters and the same quarter last year [1][4][8]. Financial Performance - Revenue for Q3 2025 was $4.3 million, a decrease of 47.3% from Q2 2025 and a decrease of 57.5% from Q3 2024 [2][4]. - Gross profit was $1.8 million, with a gross margin of 40.9%, down from 64.4% in Q2 2025 and 82.5% in Q3 2024 [2][6]. - Operating loss was $20.4 million, compared to a loss of $8.7 million in Q2 2025 and a profit of $87.3 million in Q3 2024 [2][7]. - Net loss was $6.7 million, or ($0.48) per diluted ADS, compared to a net loss of $9.1 million in Q2 2025 and a profit of $72.6 million in Q3 2024 [2][8]. - Non-IFRS net loss was $11.0 million, or ($0.79) per diluted ADS, compared to a non-IFRS net loss of $8.1 million in Q2 2025 and a profit of $80.8 million in Q3 2024 [2][9]. Balance Sheet and Cash Flow - Cash and cash equivalents at September 30, 2025, totaled $13.4 million, down from $41.6 million at June 30, 2025 [10]. - The company held 3,234 Bitcoin valued at $365.6 million, with 1,617 Bitcoin being released from pledge to repay half of the convertible debt [11]. Strategic Initiatives - The CEO emphasized a disciplined approach to managing the balance sheet, reducing debt by leveraging Bitcoin holdings, which has improved financial flexibility and supported a buyback program [3]. - The IoT product business is strengthening, with a three-year revenue design win pipeline increasing to $300 million, and over 45% of related projects expected to enter mass production by 2026 [3].

Core Insights - Sequans Communications has redeemed 50% of its convertible debt, reducing total outstanding debt from $189 million to $94.5 million through the sale of 970 Bitcoin [1][2] - The company's Bitcoin holdings decreased from 3,234 BTC to 2,264 BTC, with an estimated Bitcoin Net Asset Value (NAV) of approximately $240 million, lowering the debt-to-NAV ratio from 55% to 39% [2][4] - This strategic move is expected to enhance Sequans' ADS buyback program and provide additional financial flexibility for future capital market initiatives [3][4] Financial Strategy - The redemption of convertible debt was funded by leveraging Bitcoin holdings, which aligns with the company's strategy of using Bitcoin as a primary treasury reserve asset [1][5] - The company aims to optimize its Bitcoin treasury and enhance shareholder value through disciplined financial actions [4][5] - Sequans plans to pursue various capital market initiatives, including potential issuance of preferred shares and yield generation on a portion of its Bitcoin holdings [4][5] Company Overview - Sequans Communications is a fabless semiconductor company specializing in wireless 4G/5G technology for IoT applications and is a pioneer in Bitcoin treasury management [5][6] - The company focuses on developing innovative technologies for AI-connected applications, including secured payments and smart cities [6][7] - Founded in 2003 and headquartered in France, Sequans operates globally with offices in multiple countries [7]

Core Insights - Corporate digital asset activity has remained subdued due to recent crypto deleveraging, but capital flows are beginning to normalize as U.S.-China trade talks progress [1] - B. Riley initiated coverage of several digital asset treasury companies (DATCOs) with buy ratings, including BitMine Immersion Technologies, SharpLink Gaming, FG Nexus, Kindly MD, and Sequans Communications [1] Group 1: Market Activity - Despite market weakness, DATCOs have continued to accumulate crypto, with BitMine Immersion leading by adding approximately $300 million in ether (ETH), raising its concentration ratio to 10.6 ETH per 1,000 shares compared to the group average of 3.9x [2] - The median market net asset value (NAV) for the 25 companies tracked by B. Riley improved to 1.1x from 1.0x, while the average remained steady at 1.0x [2] Group 2: Stock Buybacks - B. Riley anticipates that firms trading below NAV will initiate stock buybacks to reduce valuation gaps, referencing ETHZilla's success in monetizing crypto holdings for share repurchases [3] - Sequans Communications is highlighted as trading at the steepest discount in the group at 0.7x NAV, with third-quarter results expected on November 4 [3] Group 3: Institutional Adoption - Solana (SOL) has launched its first spot exchange-traded funds (ETFs) in Hong Kong and the U.S., attracting $800 million in first-day inflows, reinforcing its status as a tier-one asset alongside bitcoin (BTC) and ether [4] Group 4: Company Positioning - BitMine Immersion is viewed as the best-positioned company within the DATCO coverage, while SharpLink Gaming experienced a quiet week with no significant catalysts [5]

Core Insights - Sequans Communications S.A. will release its financial results for Q3 2025 on November 4, 2025, during pre-market hours, followed by a conference call at 8:00 a.m. ET [1] - The company is a pioneer in adopting Bitcoin as its primary treasury reserve asset and specializes in cellular IoT semiconductor solutions [4][5] Company Overview - Sequans is a fabless semiconductor company focused on wireless 4G/5G technology for IoT and aims to strategically accumulate Bitcoin as a long-term investment [4] - The company designs and develops technologies for AI-connected applications, including secured payment, smart mobility, and smart cities, with a comprehensive portfolio of 4G/5G solutions [5] - Founded in 2003, Sequans is headquartered in France and has a global presence with offices in multiple countries [6]