Sequans Communications S.A. (NYSE: SQNS) offered 970 Bitcoin to redeem 50% of its July convertible debt. The transfer lowered whole debt from $189 million to $94.5 million.
The corporate’s Bitcoin treasury now stands at 2,264 BTC, value 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 corporate’s ADS buyback program.
Sequans is the primary publicly listed Bitcoin treasury firm to dump a good portion of its holdings. The transaction doesn’t change the corporate’s long-term Bitcoin technique, the corporate mentioned.
The Paris-based IoT semiconductor supplier will proceed to pursue its Bitcoin treasury initiative whereas exploring capital markets alternatives. These embrace potential preferred-share issuance and yield era on parts of its remaining Bitcoin.
Sequans’ inventory traded close to $6.25, down 13% after the announcement. 12 months-to-date, shares are down 82%.
The corporate maintains a present ratio of 1.83 and reported $8.1 million in Q2 income, with a web lack of $9.1 million. The debt discount removes covenant constraints and offers extra strategic flexibility for its Bitcoin treasury administration.
This transfer was barely anticipated as analysts flagged the switch final week after a pockets linked to Sequans moved bitcoin to a Coinbase tackle.
Again in July, the corporate introduced that it had moved into Bitcoin by a treasury initiative backed by a $384 million non-public placement. The funding included $195 million in fairness securities and $189 million in convertible secured notes.
Sequans deliberate to make use of this capital to construct a Bitcoin place alongside its core IoT operations.
Bitcoin value slumps
Sequan’ sale comes as bitcoin continues to slip as a consequence of financial components. Bitcoin’s value has slumped beneath $101,000, down from its early October all-time excessive above $126,000.
The decline has been pushed by heavy outflows from crypto ETFs, with spot Bitcoin ETFs dropping $1.3 billion and spot Ether ETFs almost $500 million since October 29.
Technical components added stress, as Bitcoin briefly fell beneath its 200-day shifting common, a key gauge of long-term momentum. Renewed energy within the U.S. greenback and lingering market worry following October’s “crypto Black Friday” liquidation occasion have additional suppressed shopping for curiosity.
Analysts warn that if Bitcoin breaks beneath $100,000, a sharper decline towards April’s $74,000 lows is feasible, suggesting a possible 30% draw back.
Polymarket knowledge presently places the chances of Bitcoin falling beneath $100,000 earlier than 2026 at 89%.