"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."
"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."
Sequans sold 970 Bitcoin to redeem 50% of its July convertible debt, reducing total debt from $189 million to $94.5 million. The company's Bitcoin treasury now holds 2,264 BTC, valued at about $240 million, lowering its debt-to-net-asset-value ratio from 55% to 39%. The sale frees capital and increases flexibility for the ADS buyback program and removes covenant constraints. Sequans remains committed to its long-term Bitcoin treasury strategy while exploring capital-markets options, including potential preferred-share issuance and yield generation on remaining Bitcoin. Q2 revenue was $8.1 million with a net loss of $9.1 million and a current ratio of 1.83.
Read at Bitcoin Magazine
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