Sequans' stock price fell over 16% after selling 30% of its Bitcoin to redeem half of its convertible debt, with the semiconductor company describing the move as a "strategic asset reconfiguration."
"Our Bitcoin treasury strategy and our firm belief in BTC remain unchanged," Sequans CEO Georges Karam stated on Tuesday. "Given the current market conditions, this transaction is a tactical decision aimed at unlocking shareholder value."
The sale reduced the chip developer's Bitcoin holdings from 3,234 BTC to 2,264 BTC, deviating from its goal of accumulating 100,000 BTC over the next five years. The proceeds from the sale were used to cut its outstanding debt from $189 million to $94.5 million.
"This strengthens our financial foundation and eliminates certain debt covenant restrictions, allowing us to pursue broader strategic initiatives to prudently develop and grow our treasury, with BTC as a long-term strategic reserve asset," Karam added.
Investors reacted poorly to the move, with Sequans (SQNS) stock dropping 16.6% to $5.92 on Tuesday. The stock is down 89% from its 2025 peak of $53.90, which was reached about a week after Sequans announced its Bitcoin plans in late June.
Currently, over 200 publicly traded companies hold BTC on their balance sheets, continuing the trend of institutional adoption of Bitcoin following the launch of spot Bitcoin exchange-traded funds in the U.S. last year.
Many cryptocurrency treasury companies saw their stock prices rise after announcing new strategies, but many have since plummeted after the initial hype faded.
The decline of many companies has led analysts to question the sustainability of Bitcoin treasury strategies, especially for those companies that are not financially strong.
Sequans' sale occurred a week after cryptocurrency analysts flagged a transfer of 2,264 BTC, making it one of the most notable Bitcoin sales among publicly traded companies.
Sequans is now the 33rd largest corporate Bitcoin holder, having dropped four places after its Bitcoin purchase in mid-July.
Related: Willy Woo: Strategy will not face Bitcoin (BTC) liquidation in the next bear market
Original: “Sequans' stock falls 16% after selling 970 BTC to reduce debt”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
