Semiconductor manufacturer Sequans, listed on the New York Stock Exchange, announced the sale of 970 bitcoin to pay down company debt just four months after adopting a bitcoin treasury strategy.
sequans halves debt after bitcoin sale
Paris-based Sequans began accumulating bitcoin in July and has now reduced its holdings from 3,234 BTC to 2,264 BTC, currently valued at approximately $228 million.
The sale allowed the company to slash its outstanding debt by 50%, bringing it down from $189 million to $94.5 million.
Following the announcement, Sequans’ stock closed down 16.6%.
CEO Georges Karam reaffirmed the company’s commitment to its bitcoin strategy, stating:
“Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged.”
He added that the decision was made to unlock shareholder value amid current market conditions, strengthen the financial foundation, and enable greater strategic flexibility for future treasury growth with bitcoin as a long-term reserve asset.
context of corporate bitcoin treasuries
Sequans is one of more than 200 publicly traded companies utilizing a bitcoin treasury strategy.
This approach was popularized by Nasdaq-listed MicroStrategy, now known as Strategy, which began buying bitcoin in August 2020 and has since accumulated over 641,000 coins, making it the largest public corporate holder of BTC.
While such strategies can boost visibility and stock exposure to bitcoin, experts have noted the risks associated with holding volatile digital assets on corporate balance sheets.
Several companies have seen their share prices decline after adopting digital asset treasuries.
market reaction and outlook
The recent bitcoin sale by Sequans comes amid a broader market downturn, with bitcoin prices falling below the $100,000 mark, marking a 21% decline from October peaks.
Despite near-term volatility, Sequans maintains its view of bitcoin as a core strategic reserve.
