Markets
What to know:
- Sequans Communications offloaded 970 Bitcoin to wipe out half of its convertible debt-now down to a “manageable” $94.5 million.
- In a groundbreaking move, Sequans-bless their hearts-became the first of those beloved bitcoin treasury firms to, well, actually sell some of their beloved BTC.
- Joining the ranks of other BTC-hoarding companies, Sequans finds itself watching its market cap fall below the actual worth of its bitcoin stash. Oh, the irony!
In what might be the beginning of the end, or merely a bizarre interlude of chaotic unpredictability in the crypto theater, Paris-based Sequans (SQNS) is the first bitcoin treasury darling to dump its shiny, digital gold. The company’s decision, laid bare during their third-quarter earnings report on Tuesday, revealed that 970 bitcoin were parted with to clear half of its July 2025 convertible debt, trimming the total from $189 million to a more “breathable” $94.5 million.
Now, with a cozy pile of 2,264 BTC left in the vault (worth, for the moment, about $240 million), Sequans has managed to lower its debt-to-net asset value (NAV) ratio from 55% to a more modest 39%. Oh, how the mighty fall… or rise? We’re not sure yet, but let’s stick with rising. For now.
CEO Georges Karam, in a moment of corporate poise, referred to the move as tactical and market-driven-because, naturally, that’s how you describe a decision that seems to be a mix of necessity and fate. But fear not, shareholders! Despite the tactical sell-off, Sequans insists that its long-term bitcoin strategy is “still intact.” Don’t worry, folks, fewer debt covenants, less leverage, and a potential expansion of capital market options await, including a new-and-improved ADR buyback program. So much for that all-in Bitcoin dream!
The Bubble Aftermath
The stock price of Sequans’ ADRs has slumped an additional 9% on Tuesday, adding to a horrifying 82% drop year-to-date. The tiny semiconductor company, in a bout of reckless inspiration, jumped into the bitcoin treasury frenzy in July, like so many others, hoping to ride the coattails of Michael Saylor’s bold strategy. Spoiler alert: The results? Not quite the jackpot they’d envisioned.
Despite bitcoin’s recent dips, it’s still a mere 20% shy of its all-time high, leaving Sequans and its fellow BTC treasury brethren in a bit of a pickle. Their stock prices are plummeting, while their precious bitcoin is apparently still worth something, just not enough to save them from the fiscal black hole they’ve created. This ever-growing list of BTC-hoarding companies now finds themselves in a rather sticky situation: the market cap is nowhere near the value of their bitcoin reserves, which makes it difficult, if not impossible, to fund further accumulation. That may force these firms to do the unthinkable: sell off more BTC to pay down debt or-dare we say it?-return money to shareholders. The horror! 😱
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2025-11-04 18:58