Northland initiates coverage on Sequans stock with Outperform rating

Investing.com - Northland initiated coverage on Sequans Communications (NYSE:SQNS) with an Outperform rating and a $3.50 price target on Monday, citing the company’s recent Bitcoin treasury strategy. According to InvestingPro, this move follows broader industry trends in cryptocurrency treasury management, with detailed analysis available in the Pro Research Report covering over 1,400 top stocks.

On June 30, 2025, Sequans announced a $384 million strategic investment to launch its Bitcoin treasury initiative, creating a new business segment alongside its core semiconductor cellular IoT operations. This strategy follows the approach pioneered by Strategy Incorporated (NASDAQ:MSTR), formerly MicroStrategy, which has seen a remarkable 191.89% return over the past year. InvestingPro data shows MSTR currently appears overvalued, with a P/E ratio of 20.37 and strong momentum scores.

The company completed the $384 million private placement on July 10, 2025, with backing from over 40 institutional investors. The financing included $195 million through an equity offering and $189 million via a convertible debt offering.

For the equity portion, Sequans issued 139.4 million shares and 20.9 million warrants exercisable at $1.40 per share. The convertible notes were issued with a conversion price of $2.10 per share, along with 20.2 million additional warrants convertible at $1.40 per share.

The offerings raised an immediate $384 million, with potential for an additional $57.6 million from warrant proceeds, bringing the possible total to $441.6 million. Northland cited several factors supporting Bitcoin treasury strategies, including inflation hedging, long-term appreciation potential, and business model diversification.

In other recent news, Strategy reported record second-quarter 2025 results, surpassing consensus earnings forecasts. The company has adjusted its 2025 Bitcoin KPI targets upward for the second time this year and introduced a full-year financial outlook, projecting $34 billion in operating income and $24 billion in net income. Additionally, Strategy anticipates earnings of $80 per share for the year. Despite these positive results, the stock experienced a decline. In terms of analyst activity, Mizuho (NYSE:MFG) raised its price target for Strategy to $586 while maintaining an Outperform rating, citing the company’s outperformance relative to Bitcoin. Clear Street also increased its price target to $537, maintaining a Buy rating, based on expectations for stronger Bitcoin yield and higher forward Bitcoin balances. H.C. Wainwright reiterated its Buy rating with a price target of $521 following the Q2 results. These developments highlight the varied analyst perspectives on Strategy’s future performance.

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