Sequans shares fell 16% on Tuesday after the chip maker acknowledged it sold 970 Bitcoin to redeem half of its $189 million outstanding convertible debt.
Shares in Sequans dropped by over 16% after promoting 30% of its Bitcoin (BTC) to redeem half of its convertible debt, a pass the semiconductor company described as a “strategic asset reallocation.”
“Our Bitcoin treasury diagram and our deep conviction in Bitcoin remain unchanged,” Sequans CEO Georges Karam acknowledged on Tuesday. “This transaction became once a tactical decision aimed at unlocking shareholder assign given present market conditions.”
The sale within the reduction of the chip developer’s Bitcoin stash from 3,234 BTC to 2,264 BTC, backsliding from its aim to amass 100,000 BTC over the following 5 years. Proceeds from the sale had been historical to within the reduction of its outstanding debt from $189 million to $94.5 million.
“It strengthens our financial basis and eliminates clear debt covenant constraints, enabling us to pursue a terrific wider characteristic of strategic initiatives to prudently plan and develop our treasury, with Bitcoin as a long-term strategic reserve asset,” Karam added.
The pass became once not smartly purchased by traders, with shares in Sequans (SQNS) falling 16.6% to $5.92 on Tuesday. It’s now 89% off its 2025 high of $fifty three.90, which became once reached about per week after Sequans unveiled its Bitcoin plans in leisurely June.
More than 200 publicly traded corporations now preserve Bitcoin on their balance sheets, continuing the vogue of institutional Bitcoin adoption after characteristic Bitcoin alternate-traded funds launched within the US final yr.
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Many crypto treasury corporations gain considered their stocks rally on asserting the brand new diagram, nonetheless many gain now plunged after the preliminary hype extinct.
The declines in quite quite a bit of corporations gain led analysts to solid doubt on the sustainability of Bitcoin treasury strategies, particularly these of corporations that aren’t already in a actual financial plan
Analysts spotted Sequans’ transfer final week
Sequans’ sale comes per week after crypto analysts flagged a 2,264 BTC transfer on Oct. 29, making it one among essentially the most necessary Bitcoin sales among publicly traded corporations to this point.
