Sequans Redeems 50% of Convertible Debt Through Strategic Asset Reallocation

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 50% of the convertible debt issued in its recent offering on July 7, 2025. This strategic move was funded through the sale of 970 Bitcoin.

As a result of this transaction, Sequans reduces its total outstanding debt from $189 million to $94.5 million. The Company's Bitcoin holdings now stand at 2,264 BTC, down from 3,234 BTC. Based on current market prices, Sequans' Bitcoin Net Asset Value (NAV) is estimated at approximately $240 million, lowering its debt-to-NAV ratio from 55% to 39%, which represents a more prudent leverage ratio that is expected to provide additional optionality for the Company to better optimize its Bitcoin treasury.

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.