Sequans shares drop 16% after selling 970 Bitcoin to cut debt
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Sequans shares fell 16% on Tuesday after the chip maker said it sold 970 Bitcoin to redeem half of its $189 million outstanding convertible debt.
Shares in Sequans dropped by over 16% after selling 30% of its Bitcoin to redeem half of its convertible debt, a move the semiconductor company described as a “strategic asset reallocation.”
“Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,” Sequans CEO Georges Karam said on Tuesday. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
The sale cut the chip developer’s Bitcoin (BTC) stash from 3,234 BTC to 2,264 BTC, backsliding from its goal to accumulate 100,000 BTC over the next five years. Proceeds from the sale were used to cut its outstanding debt from $189 million to $94.5 million.
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