Pasqal's $2 billion Nasdaq wager faces a French veto.

      France's Pasqal is set to join Nasdaq with a valuation of $2 billion, approximately 100 times its revenue. Its filings highlight two main points: quantum computing may never yield profits, and Paris retains the power to approve company ownership.

      The French quantum computing company is merging with Bleichroeder Acquisition Corp. II, a blank-check firm, in a deal valuing Pasqal at $2 billion before cash. Sifted’s Daphné Leprince-Ringuet examined the extensive 300-plus pages of filings, offering a candid perspective on the financial realities of quantum technology.

      To begin with the valuation, Pasqal generated €16.5 million in revenue in 2025, making the $2 billion valuation roughly 100 times its sales. This appears high until compared to other companies in the sector.

      Relatively Affordable in Quantum Terms

      CEO Wasiq Bokhari suggests that Pasqal is, comparatively, a good deal. He highlighted to Leprince-Ringuet that its publicly traded counterparts are valued much higher. Quantinuum recently entered the public market and has a market cap nearing $20 billion, translating to around 647 times its 2025 revenue. In this context, the 100 times multiple seems almost conservative.

      This comparison is insightful, indicating how the market assesses quantum technology: not by current earnings but by the potential future returns anticipated by investors. The filings candidly address the inherent risks, cautioning that “commercial traction of quantum computing technology may never materialize” and the machines might fail to perform as expected.

      The French Government's Oversight

      Another significant risk is political. As a French company engaged in vital technology, Pasqal is subject to what the filings describe as “French state influence.” Any outside investor from outside France or the EU seeking a substantial ownership stake must obtain approval from the French Ministry of the Economy.

      In essence, Paris maintains control over ownership stakes. This control is a characteristic aspect of Europe’s strategy regarding strategic technologies, balancing the desire to cultivate champions while retaining oversight. This principle aligns with France’s broader tech-sovereignty initiatives.

      For a company seeking investments from global sources, this stipulation poses a real challenge. It also explains why Pasqal’s decision to list in the US is significant.

      Rationale for Listing in the US

      Bokhari explained that the choice of the US market was driven by the availability of capital. This rationale has prompted numerous European deep-tech companies to make the jump across the Atlantic. IQM made history as the first European quantum firm to list on a major US exchange. Others involved in advanced hardware and chip inspection have also opted to raise funds where capital is most abundant.

      The transaction is substantial, with Pasqal anticipating around $500 million in gross proceeds. The merged entity will be known as Pasqal Holding SA and aims to finalize the listing on Nasdaq in the latter half of this year. The details were laid out in a joint Form F-4 submitted to the SEC on May 26 and updated a month later.

      This trend poses challenges for Europe.

      It nurtures its most sophisticated companies domestically but watches as international markets assign their values. Pasqal’s filings illuminate the need for substantial, patient investment in quantum technology, making the French ownership veto an unappealing factor. Ultimately, whether the technology justifies its valuation remains an unresolved question, as the company itself acknowledges.