Sequence Communications SA (NYSE: SQNS) Sold 970 BTC to redeem 50% of its convertible debt in July. The move reduced total debt from $189 million to $94.5 million.
The company’s Bitcoin treasury now stands at 2,264 Bitcoin, worth about $240 million. This reduces Sequans’ debt-to-NAV ratio from 55% to 39%. This sale frees up capital and enhances flexibility for the company’s ad buyback program.
Sequans is the first publicly listed Bitcoin treasury company to offload a significant portion of its holdings. The company said the deal does not change the company’s long-term Bitcoin strategy.
The Paris-based IoT semiconductor provider will continue to pursue its Bitcoin treasury initiative while exploring capital markets opportunities. These include potential issuance of preferred shares and generating yield on portions of 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 revenue of $8.1 million in the second quarter, with a net loss of $9.1 million. Debt reduction removes covenant restrictions and provides additional strategic flexibility for managing a Bitcoin treasury.
This move was little expected by analysts Mark the transfer Last week after a wallet linked to Sequans transferred bitcoin to a Coinbase address.
In July, the company announced it was moving into Bitcoin through a treasury initiative backed by a $384 million private placement. The financing included $195 million of equity securities and $189 million of secured convertible notes.
Sequans planned to use this capital to build a Bitcoin hub alongside its core IoT operations.
Bitcoin price falls
Sequan’s sale comes as Bitcoin continues to decline due to economic factors. Bitcoin’s price fell below $101,000, down from an all-time high in early October above $126,000.
The decline was driven by significant outflows from cryptocurrency ETFs, with spot Bitcoin ETFs losing $1.3 billion and Ethereum ETFs nearly $500 million since October 29.
Technical factors added pressure, as Bitcoin briefly fell below its 200-day moving average, a key measure of long-term momentum. Renewed US dollar strength and continued market concerns following October’s “Black Friday Cryptocurrency” liquidation event further suppressed buying interest.
Analysts warn that if Bitcoin breaks below $100,000, a steeper decline towards April lows of $74,000 is possible, suggesting a potential 30% decline.
Polymarket data currently puts the odds of Bitcoin falling below $100,000 before 2026 at 89%.
The post Sequans Sells 970 Bitcoin To Slash Some Of Its Debt first appeared on Investorempires.com.
