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Sequans shares fell 16% connected Tuesday aft the spot shaper said it sold 970 Bitcoin to redeem fractional of its $189 cardinal outstanding convertible debt.
Shares successful Sequans dropped by implicit 16% aft selling 30% of its Bitcoin to redeem fractional of its convertible debt, a determination the semiconductor institution described arsenic a “strategic plus reallocation.”
“Our Bitcoin treasury strategy and our heavy condemnation successful Bitcoin stay unchanged,” Sequans CEO Georges Karam said connected Tuesday. “This transaction was a tactical determination aimed astatine unlocking shareholder worth fixed existent marketplace conditions.”
The merchantability chopped the spot developer’s Bitcoin (BTC) stash from 3,234 BTC to 2,264 BTC, backsliding from its goal to accumulate 100,000 BTC implicit the adjacent 5 years. Proceeds from the merchantability were utilized to chopped its outstanding indebtedness from $189 cardinal to $94.5 million.
Source: Sequans“It strengthens our fiscal instauration and removes definite indebtedness covenant constraints, enabling america to prosecute a wider acceptable of strategical initiatives to prudently make and turn our treasury, with Bitcoin arsenic a semipermanent strategical reserve asset,” Karam added.
The determination wasn’t received good by investors, with shares successful Sequans (SQNS) falling 16.6% to $5.92 connected Tuesday. It is present 89% disconnected its 2025 precocious of $53.90, which was reached astir a week aft it unveiled its Bitcoin plans successful precocious June.
Source: Sequans More than 200 publically traded companies now person Bitcoin connected their equilibrium sheets, continuing the inclination of organization Bitcoin adoption aft spot Bitcoin exchange-traded funds launched successful the US past year.
Related: Why Zcash and privateness tokens are backmost successful the conversation
Many crypto treasury companies person seen their stocks rally connected announcing the caller strategy, but galore person present plunged aft the archetypal hype faded.
The declines successful galore firms person led analysts to formed uncertainty connected the sustainability of Bitcoin treasury strategies, peculiarly those of firms that aren’t already successful a beardown fiscal position
Analysts spotted Sequans’ transportation past week
Sequans’ merchantability comes a week aft crypto analysts flagged a 2,264 BTC transportation connected Oct. 29, making it 1 of the astir notable Bitcoin income among publically traded companies to date.
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