Bitcoin treasury firm Sequans sold 970 $BTC to reduce debt, says it remains committed to long-term accumulation.
Summary
Sequans sold 970 $BTC to reduce debt, while remaining committed to accumulation
The sale enabled the firm to halve its debt, reducing it to $94.5 million
Some small-cap treasury firms routinely sell their BTC for cash flow
In a rare move, a Bitcoin treasury firm sold its BTC holdings. Sequans Communications, a publicly traded IoT chipmaker, and a Bitcoin treasury firm announced the sale of 970 BTC from their balance sheets. The company sold its BTC to halve its debt from $189 million to $94.5 million, in an effort to strengthen its financial position.
Sequans now holds 2,264 BTC, down from 3,234 BTC, with a net asset value of about $240 million. Still, according to Georges Karam, CEO of Sequans, this operation puts the company in a better position to expand its Bitcoin holdings in the future.
Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,” said Georges Karam, CEO of Sequans. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.
Sequeans has a market cap of $95 million, trading at a discount compared to its BTC holdings minus its debt. For this reason, the operation enabled it to reduce its debt-to-NAV ratio from 55% to 39%, potentially improving its financial position.
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