Sequans dumps nearly a third of bitcoin holdings to pay down debt as BTC falls to four-month low
Sequans sold approximately 970 bitcoin to redeem half of its convertible debt, reducing its holdings and debt ratio.Summary
Paris-based Sequans Communications redeemed half of its outstanding convertible debt by selling roughly 970 bitcoin, a move described as "strategic asset reallocation" to strengthen its balance sheet. This sale reduced Sequans' bitcoin treasury from 3,234 BTC to 2,264 BTC and lowered its debt-to-net-asset-value ratio from 55% to 39%, using the proceeds to pay down $94.5 million in debt. Despite management insisting their "deep conviction in bitcoin remains unchanged," this action makes Sequans the first publicly listed company with a bitcoin treasury to significantly offload holdings. CEO Georges Karam stated the transaction was a "tactical decision aimed at unlocking shareholder value given current market conditions," which will enhance flexibility for stock buybacks while maintaining "long-term treasury optionality." The stock price has fallen 56% since the company began its bitcoin-treasury program in June, coinciding with Bitcoin slipping to a four-month low.
(Source：The Block)