Sequans Communications S.A. (NYSE: SQNS) sold 970 Bitcoin to redeem 50% of its July convertible debt. The move reduced total debt from $189 million to $94.5 million.
The company’s Bitcoin treasury now stands at 2,264 BTC, worth about $240 million. This lowers Sequans’ debt-to-net-asset-value ratio from 55% to 39%. The sale frees up capital and boosts flexibility for the company’s ADS buyback program.
Sequans is the first publicly listed Bitcoin treasury company to offload a significant portion of its holdings. The transaction does not change the company’s long-term Bitcoin strategy, the company said.
The Paris-based IoT semiconductor provider will continue to pursue its Bitcoin treasury initiative while exploring capital markets opportunities. These include potential preferred-share issuance and yield generation on portions of its remaining Bitcoin.
Sequans’ stock traded near $6.25, down 13% after the announcement. Year-to-date, shares are down 82%.
The company maintains a current ratio of 1.83 and reported $8.1 million in Q2 revenue, with a net loss of $9.1 million. The debt reduction removes covenant constraints and provides additional strategic flexibility for its Bitcoin treasury management.
This move was slightly expected as analysts flagged the transfer last week after a wallet linked to Sequans moved bitcoin to a Coinbase address.
Back in July, the company announced that it had moved into Bitcoin through a treasury initiative backed by a $384 million private placement. The funding included $195 million in equity securities and $189 million in convertible secured notes.
Sequans planned to use this capital to build a Bitcoin position alongside its core IoT operations.
Bitcoin price slumps
Sequan’ sale comes as bitcoin continues to slide due to economic factors. Bitcoin’s price has slumped below $101,000, down from its early October all-time high above $126,000.
The decline has been driven by heavy outflows from crypto ETFs, with spot Bitcoin ETFs losing $1.3 billion and spot Ether ETFs nearly $500 million since October 29.
Technical factors added pressure, as Bitcoin briefly fell below its 200-day moving average, a key gauge of long-term momentum. Renewed strength in the U.S. dollar and lingering market fear following October’s “crypto Black Friday” liquidation event have further suppressed buying interest.
Analysts warn that if Bitcoin breaks below $100,000, a sharper decline toward April’s $74,000 lows is possible, suggesting a potential 30% downside.
Polymarket data currently puts the odds of Bitcoin falling below $100,000 before 2026 at 89%.
Source: https://bitcoinmagazine.com/business/sequans-sells-970-bitcoin-to-cut-debt
