Semiconductor producer Sequans, listed on the New York Inventory Change, introduced the sale of 970 bitcoin to pay down firm debt simply 4 months after adopting a bitcoin treasury technique.
sequans halves debt after bitcoin sale
Paris-based Sequans started accumulating bitcoin in July and has now decreased its holdings from 3,234 BTC to 2,264 BTC, at present valued at roughly $228 million.
The sale allowed the corporate to slash its excellent debt by 50%, bringing it down from $189 million to $94.5 million.
Following the announcement, Sequans’ inventory closed down 16.6%.
CEO Georges Karam reaffirmed the corporate’s dedication to its bitcoin technique, stating:
“Our Bitcoin treasury technique and our deep conviction in Bitcoin stay unchanged.”
He added that the choice was made to unlock shareholder worth amid present market circumstances, strengthen the monetary basis, and allow better strategic flexibility for future treasury progress with bitcoin as a long-term reserve asset.
context of company bitcoin treasuries
Sequans is considered one of greater than 200 publicly traded corporations using a bitcoin treasury technique.
This strategy was popularized by Nasdaq-listed MicroStrategy, now referred to as Technique, which started shopping for bitcoin in August 2020 and has since amassed over 641,000 cash, making it the biggest public company holder of BTC.
Whereas such methods can enhance visibility and inventory publicity to bitcoin, consultants have famous the dangers related to holding unstable digital belongings on company stability sheets.
A number of corporations have seen their share costs decline after adopting digital asset treasuries.
market response and outlook
The current bitcoin sale by Sequans comes amid a broader market downturn, with bitcoin costs falling beneath the $100,000 mark, marking a 21% decline from October peaks.
Regardless of near-term volatility, Sequans maintains its view of bitcoin as a core strategic reserve.