Sequans Sells BTC to Reduce Debt

Sequans Communications has sold 970 Bitcoin to retire half of its convertible debt, decreasing total liabilities from $189 million to $94.5 million. This marks a significant move for Sequans, as it is reportedly the first among bitcoin treasury firms to liquidate some of its holdings, which has been a growing trend among companies that have positioned themselves as bitcoin treasuries. The company's bitcoin reserves now amount to 2,264 BTC, valued at around $240 million, which has improved its debt-to-net asset value (NAV) ratio from 55% to 39%. CEO Georges Karam emphasized that this decision is tactical, aimed at reducing leverage and debt obligations, thereby enabling Sequans to explore additional capital market strategies such as an ADR buyback program and preferred share issuances. Despite the overall downturn of its stock price—down 82% year-to-date—Sequans aims to stabilize its financial standing and potentially broaden its market strategies in the face of ongoing volatility in the cryptocurrency sector.

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