CMC News

Sequans Communications Sells 970 BTC To Pay Down Debt

Paris-based Sequans Communications redeemed half of its outstanding convertible debt on Tuesday by selling roughly 970 $BTC. The company framed the move as strategic asset reallocation aimed at strengthening its balance sheet.

The sale trims Sequans' Bitcoin treasury from 3,234 $BTC to 2,264 $BTC, worth around $232 million at current prices. The transaction also lowers the company's debt-to-net-asset-value ratio from 55% to 39%, with proceeds used to pay down $94.5 million of convertible debt issued in July.

According to Bitcoin Treasuries, the sale drops Sequans from No. 29 to No. 33 among publicly traded companies holding #Bitcoin. Despite management's insistence that its deep conviction in Bitcoin remains unchanged, the sale makes Sequans the first publicly listed Bitcoin #treasury company to offload its holdings significantly.

On-chain analysts flagged the transfer last week after a wallet linked to Sequans moved nearly 1,000 $BTC to a Coinbase address. CEO Georges Karam stated the transaction was a tactical decision aimed at unlocking shareholder value given current market conditions, emphasizing that the Bitcoin treasury strategy remains unchanged.

#Sequans said the debt reduction would enhance flexibility for its American Depositary Share #buyback program and potential preferred-share issuance. The company maintains long-term treasury optionality while addressing its debt obligations through the strategic sale.

The IoT semiconductor maker announced its Bitcoin-treasury initiative in June, raising $385 million through debt and equity placements advised by Swan Bitcoin. The move was modeled on #Strategy's leveraged Bitcoin-accumulation approach, using proceeds from securities offerings to buy and hold Bitcoin as a reserve asset.