Sequans Bitcoin Sale: 970 BTC Sold to Slash $95M Debt
French semiconductor firm Sequans Communications completed a strategic Bitcoin sale of 970 BTC (≈$100 million) to repurchase convertible bonds and halve its $189 million debt. The move reduced its total debt to $94.5 million and improved the debt-to-NAV ratio to 39%. It marks the first Bitcoin sale by a Digital Asset Treasury firm. Post-sale, Sequans holds 2,264 BTC (≈$240 million). Management says the Bitcoin sale enhances financial flexibility, risk management and supports an expanded ADS buyback program. Despite this, Sequans shares remain discounted with a 40% decline over one month. Traders will monitor the impact on crypto financing and market sentiment.
Bearish
Sequans’s large Bitcoin sale of 970 BTC introduces significant selling pressure on the market. While the divestment strengthens its balance sheet and improves risk metrics, the immediate influx of supply is likely to weigh on BTC price. Short-term bearish sentiment may prevail as traders price in potential follow-on sales by Digital Asset Treasury firms. Over the long term, however, this move underscores bitcoin’s utility as a financing tool, suggesting a neutral outlook once selling pressure subsides.