Two National Guard members shot near White House
PARIS - Sequans Communications S.A. (NYSE:SQNS) has redeemed 50% of its convertible debt by selling 970 bitcoin, the company announced Tuesday. The stock, currently trading at $7.10, has experienced significant volatility, having fallen 72% over the past year.
The semiconductor provider reduced its total outstanding debt from $189 million to $94.5 million through the transaction. Sequans now holds 2,264 bitcoin, down from its previous 3,234 bitcoin position. InvestingPro data shows the company holds more cash than debt on its balance sheet, with a healthy current ratio of 1.83.
Based on current market prices, the company's Bitcoin Net Asset Value is approximately $240 million, which has lowered its debt-to-NAV ratio from 55% to 39%.
"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."
The debt reduction is expected to enhance the company's previously announced ADS buyback program. According to the press release, the move removes certain debt covenant constraints and provides additional financial flexibility.
Sequans, which specializes in wireless 4G/5G cellular technology for the Internet of Things, adopted bitcoin as its primary treasury reserve asset earlier this year. The July 7 convertible debt offering that is being partially redeemed was issued less than four months ago.
The company stated it is now better positioned to pursue future capital markets initiatives, including its ADS buyback program, potential issuance of preferred shares, and yield generation on a portion of its bitcoin holdings.
Sequans Communications is headquartered in France with offices across the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.
In other recent news, Sequans Communications reported its Q2 2025 earnings, revealing modest revenue growth and strategic initiatives in the IoT and Bitcoin sectors. The company posted revenues of $8.1 million, marking a 1.1% increase compared to the previous year, alongside a net loss of $9.1 million. These developments are part of Sequans' broader focus on IoT and Bitcoin investments. Additionally, B.Riley initiated coverage on Sequans Communications with a Buy rating and set a price target of $13.00. The firm's analysis indicates that Sequans is trading at 0.7 times its modified net asset value, which is below the peer average of 1.0 times. These updates reflect the company's ongoing efforts to strengthen its market position and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.