Summary
- Sequans said it sold 970 Bitcoin to repay debt.
- After the sale announcement, Sequans' share price fell 16.6%, and its Bitcoin holding rank also fell to 33rd.
- Sequans' CEO said there is no change to the long-term Bitcoin holding strategy, and that this measure has strengthened the company's financial structure.
Shares plunged after semiconductor company Sequans said it sold part of its Bitcoin (BTC) holdings to repay debt.
On the 4th (local time), Cointelegraph reported that Sequans sold 970 Bitcoin, about 30% of its total holdings, to repay half of a $189,000,000 convertible bond. Accordingly, Sequans' shares closed at $5.92, down 16.6%.
Georges Karam, Sequans' Chief Executive Officer (CEO), said, "Our long-term stance of holding Bitcoin as a core strategic asset remains unchanged," adding, "This transaction was a tactical decision based on market conditions and a measure to enhance shareholder value." He continued, "This debt repayment has strengthened the company's financial structure and eased constraints under debt covenants, allowing for more flexible strategic asset management in the future."
Currently, more than 200 publicly listed companies worldwide hold part of their assets in Bitcoin, and after this sale Sequans dropped four spots to 33rd in the corporate Bitcoin holdings ranking.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
