Sivers Semiconductors: Short Sellers Retreat as a 53.8 Million Share Authorization and Restated Losses Take Center Stage

Despite a 2000% stock surge, Sivers restates wider losses and faces a 15% dilution proposal. Short sellers retreat ahead of MSCI inclusion, as the company pursues a Nasdaq dual listing.

The paradox is hard to ignore. Sivers Semiconductors has staged a 2,000% rally over the past twelve months, pushing its stock to 86.85 Swedish kronor and making it one of the most explosive plays on the Stockholm exchange. Yet the company heads into the final days of May with a restated set of books that show a deeper net loss, a board proposal that would allow up to 53.8 million new shares, and an active insider probe by the Swedish Economic Crime Authority. Short sellers, who once bet heavily against the stock, have quietly started to retreat.

Aggregate short positions fell from 8.64% to 6.81% of outstanding shares by May 26, according to regulatory filings. Voleon Capital Management remains the largest bear with 2.44%, followed by Two Sigma Investments at 2.01% and Anson Advisors at 0.50%. The pullback coincides with the stock’s inclusion in the MSCI Sweden Small Cap Index on May 29 — a move that forces passive funds to buy regardless of valuation — and a 17% single-day surge on May 25 after a Nasdaq index listing fueled momentum.

Beneath the rally, however, the financial foundation has shifted. Sivers restated its 2024 revenue downward to 219.2 million Swedish kronor from the previously reported 243.7 million, while the net loss for that year ballooned to 183.9 million kronor from 116.3 million. The revisions, driven by the company’s push to align with US PCAOB auditing standards ahead of a potential Nasdaq dual listing, also hit 2025 results: operating loss widened to 177.8 million kronor from 141.3 million, and net loss rose to 222.6 million from 186.5 million. Revenue for 2025 edged higher to 306.6 million kronor from 304.1 million, a modest adjustment that does little to alter the profitability story.

The capital needs are substantial. At the annual general meeting scheduled for June 15, the board will ask for authorization to issue up to 53,844,956 common shares, a potential dilution of roughly 15% on a fully diluted basis. The proceeds are earmarked for organic growth, acquisitions, strategic investor placements, and the Nasdaq listing itself. An additional long-term incentive plan covering 7 million stock options would add around 2% dilution. While such instruments are routine for growth-stage technology firms, the sheer size of the authorization at current prices — where the stock trades at a price-to-sales multiple of 46, roughly nine times the sector average of 5 — raises the stakes.

The index inclusion on May 29 draws a line under the short-selling exodus. MSCI’s rebalancing will channel automatic buying through passive funds and ETFs, creating a technical tailwind that exists independently of the underlying business. Yet the same day brings the delayed first-quarter report for 2026, originally scheduled for May 20 but postponed to allow the audit upgrade. That report will be the first to reflect the new accounting standards and will be scrutinized for any signs that the operational trajectory — management’s target is a $50 million to $55 million annual revenue run rate — can justify the market’s enthusiasm.

An additional element of uncertainty is the ongoing investigation by the Swedish Economic Crime Authority. The probe examines whether inside information about Sivers’ Nasdaq plans leaked before the official announcement in April. An anonymous X account with a large following published details roughly 48 hours before the company’s disclosure, and subsequent price movements drew regulatory attention. No violations have been confirmed, but for a company staking its credibility on a move to the US capital markets, the timing is awkward.

At the AGM, shareholders will also vote on a reshaped board. The nomination committee proposes retaining Dr. Bami Bastani, Todd Thomson, and Karin Raj, while adding Joakim Nideborn — a former CFO of listed tech firms who would become deputy chairman — and Helena Svancar, whose background spans international strategy at technology and financial institutions. Board compensation includes a fixed annual fee of 1.05 million kronor for the chair, 600,000 kronor for the deputy, and an equity-based allotment of 1 million kronor per member.

Behind the scenes, a separate restructuring is playing out at the ownership level. Major shareholder Achilles Capital and its parent DDM Finance are seeking a restructuring after roughly €225 million in bonds matured in April. DDM plans to sell credit portfolios worth about €30 million and technology and life sciences holdings valued at €30 million to €50 million. Whether Sivers sits inside that package remains unclear, adding a layer of overhang that the rally has so far ignored.

Analysts remain deeply skeptical. The consensus price target stands at just 6.55 kronor, a fraction of the current 86.85 kronor. The stock’s 52-week low of 2.85 kronor underscores how far the narrative has run ahead of the numbers. Management believes a gross margin above 50% and positive operating cash flow are achievable, but the May 29 report will be the first concrete test of whether the restated financials can support that path. Short sellers have pulled back, but the fundamental case has yet to be made.