Sequans Communications S.A. (NYSE: SQNS) sold The company will redeem half of its convertible debt in July. This move brought the total debt down from $189 to $94.5 millions.
The Bitcoin Treasury of the company now totals 2,264 BTC worth approximately $240 Million. This lowers Sequans’ debt-to-net-asset-value ratio from 55% to 39%. This sale releases capital for Sequans’ ADS-buyback program and increases flexibility.
Sequans was the first Bitcoin treasury publicly listed company to dispose of a substantial portion. The company does not have to change its name. long-term Bitcoin strategyThe company stated.
Paris-based IoT Semiconductor will pursue its Bitcoin Treasury Initiative while exploring opportunities in the capital markets. This includes a potential preferred share issuance as well as yield generation from portions of the remaining bitcoin.
Sequans shares traded at around $6.25 after the announcement, a 13% drop. The shares have fallen 82% in the past year.
The company has a current rate of 1,83, and reported Q2 revenues of $8.1 Million with a loss of $9.1M. It also provides more flexibility in its Bitcoin Treasury management.
Analysts were not surprised by this move. flagged the transfer A wallet connected to Sequans transferred bitcoin to a Coinbase account last week.
The company has been announcing its July earnings since then announced The company announced its entry into Bitcoin with a treasury program backed by $384 million in private placement. This funding consisted of $195 millions in equity and $189,000,000 in convertible secured note.
Sequans intended to use the capital in order to establish a Bitcoin business alongside its IoT core operations.
Bitcoin prices are falling.
Sequan’s sale will be done in Bitcoin continues to slide Due to economic reasons. Bitcoin’s value has fallen below $101,000. It was at its highest in early October, when it reached over $126,000.
Since October 29, the decline in crypto ETFs has been caused by an outflow of $1.3 billion from spot Bitcoin ETFs and nearly $500,000,000 from spot Ether.
Bitcoin fell briefly below its 200 day moving average, which is a crucial gauge for long-term movement. Renewed strength in the U.S. dollar Market fear persists after October “crypto Black Friday” A liquidation sale has slowed down the interest in buying.
Analysts have warned that Bitcoin could fall to $74,000 if it breaks through $100,000. That would mean a possible 30% drop.
Polymarket’s data puts the probability of Bitcoin dropping below $100 before 2026 as 89%.
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Source: bitcoinmagazine.com
