French semiconductor company Sequans Communications sold some of its Bitcoin holdings to reduce its debt burden. By selling 970 Bitcoins, the company repaid 50% of its convertible bonds. This move reduced its total debt from $189 million to $95 million, while strengthening its balance sheet.
Sequans sold 970 Bitcoins
The company's Bitcoin reserves, which stood at 3,234 before the recent sale, decreased to 2,264. At current market prices, the total value of these assets is approximately $240 million. This has reduced Sequans's debt-to-net-asset ratio from 55% to 39%. With this reduction, the company aims to increase its financial flexibility and create shareholder value. Sequans CEO Georges Karam stated, “Our Bitcoin asset strategy and belief in this asset have not changed. This sale is a tactical decision made in response to market conditions. We wanted to increase our balance sheet strength in the interest of our shareholders.”
Following the debt repayment, the company also plans to accelerate its previously announced ADS (American Depositary Share) repurchase plan. It is also stated that the removal of some restrictions in the debt agreements will allow for more capital markets initiatives in the future. These initiatives include issuing new preferred shares or generating returns with a portion of Bitcoin holdings.
Paris-based Sequans Communications develops wireless 4G/5G cellular connectivity solutions and focuses particularly on the Internet of Things (IoT). The company adopted Bitcoin as its primary reserve asset in early 2025. This decision was part of a corporate trend where digital assets are considered a long-term store of value instead of traditional cash management. From a financial perspective, Sequans' second-quarter revenues were $8.1 million, a 1.1% increase compared to the previous year. However, the company reported a net loss of $9.1 million. Despite this, market analysts believe that debt reduction and its Bitcoin strategy could positively impact the company's balance sheet in the medium term.
Research firm B. Riley has issued a "buy" recommendation on Sequans shares and set a target price of $13. According to analysts, the company's shares currently trade at just 0.7 times adjusted net asset value, a valuation below the industry average.
