Sequans Sells 970 Bitcoin to Slash Debt, Bitcoin Price Slumps to $101,000
Sequans Communications sold 970 BTC to cut its convertible debt in half, leaving a 2,264 BTC treasury and improving its debt-to-NAV ratio while freeing capital for buybacks.
Sequans Communications S.A. (NYSE: SQNS) sold 970 Bitcoin to redeem 50% of its July convertible debt. The move reduced total debt from $189 million to $94.5 million.
The company’s Bitcoin treasury now stands at 2,264 BTC, worth 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 company’s ADS buyback program.
Sequans is the first publicly listed Bitcoin treasury company to offload a significant portion of its holdings. The transaction does not change the company’s long-term Bitcoin strategy, the company said.
The Paris-based IoT semiconductor provider will continue to pursue its Bitcoin treasury initiative while exploring capital markets opportunities. These include potential preferred-share issuance and yield generation on portions of its remaining Bitcoin.
Sequans’ stock traded near $6.25, down 13% after the announcement. Year-to-date, shares are down 82%.
The company maintains a current ratio of 1.83 and reported $8.1 million in Q2 revenue, with a net loss of $9.1 million. The debt reduction removes covenant constraints and provides additional strategic flexibility for its Bitcoin treasury management.
This move was slightly expected as analysts flagged the transfer last week after a wallet linked to Sequans moved bitcoin to a Coinbase address.
Back in July, the company announced that it had moved into Bitcoin through a treasury initiative backed by a $384 million private placement. The funding included $195 million in equity securities and $189 million in convertible secured notes.
Sequans planned to use this capital to build a Bitcoin position alongside its core IoT operations.
Sequan’ sale comes as bitcoin continues to slide due to economic factors. Bitcoin’s price has slumped below $101,000, down from its early October all-time high above $126,000.
The decline has been driven by heavy outflows from crypto ETFs, with spot Bitcoin ETFs losing $1.3 billion and spot Ether ETFs nearly $500 million since October 29.
Technical factors added pressure, as Bitcoin briefly fell below its 200-day moving average, a key gauge of long-term momentum. Renewed strength in the U.S. dollar and lingering market fear following October’s “crypto Black Friday” liquidation event have further suppressed buying interest.
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Analysts warn that if Bitcoin breaks below $100,000, a sharper decline toward April’s $74,000 lows is possible, suggesting a potential 30% downside.
Polymarket data currently puts the odds of Bitcoin falling below $100,000 before 2026 at 89%.
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