Simply put
- French semiconductor company Seconds sold Bitcoin from the Treasury to pay off debt.
- The company currently holds 2,264 digital coins worth approximately $228 million.
- Sequan stock closed down 16.6%.
New York Stock Exchange-listed semiconductor maker Sequans (SQNS) has sold 970 bitcoins to pay down debt, the company announced Tuesday, just four months after pivoting to a digital asset treasury strategy.
The Paris-based company began purchasing major cryptocurrencies in July, said This means that the assets held were reduced from 3,234 BTC to 2,264 BTC. These assets are currently worth approximately $228 million.
Semiconductor maker Sequans has reduced its outstanding debt by 50%, from $189 million to $94.5 million.
Sequans stock (SQNS) closed down 16.6% on Tuesday afternoon ET.
“Our Bitcoin financial strategy and deep belief in Bitcoin remain unchanged,” said Sequans CEO Georges Karam.
He added: “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.
“This strengthens our financial foundation, removes the constraints of certain debt covenants, and enables us to pursue broader strategic initiatives to prudently develop and expand our Treasury with Bitcoin as a long-term strategic reserve asset.”
decryption Mr. Sequans has been contacted for comment.
Sequans is one of more than 200 publicly traded companies that follow the Nasdaq-listed company approach. strategyhas accumulated the world’s largest amount of crypto assets.
Strategy (formerly MicroStrategy) starts from software development buy Bitcoin was founded in August 2020 to provide better returns to shareholders amidst depressed stock prices.
Since then, the company has spent about $47.4 billion on Bitcoin and is the largest corporate holder of the asset, amassing 641,205 coins, equivalent to about 64 billion at the current Bitcoin price of about $100,000.
Investors can buy shares in the company and gain exposure to major cryptocurrencies without having to buy and hold digital coins.
Other companies also follow Strategy’s approach and buy Bitcoin, Ethereumand other digital coins are meant to boost stock prices and are called “digital asset vaults.”
But some experts warned About purchasing virtual currency inherent risksmay not be suitable for all companies. The stock prices of many companies that bought digital assets with surplus funds have fallen.
Despite Strategic’s earnings last week showed Analysts said the company made a profit of $2.8 billion in the third quarter, highlighting a decline in net asset value (mNAV), or the premium at which a company’s stock trades relative to its crypto holdings.
U.S. Securities and Exchange Commission in September stopped Digital advertising firm QMMM Holdings has entered into a trade to investigate “possible manipulation” of its stock price after its stock price rose more than 2,100% following an announcement to buy Bitcoin, Ethereum and Solana.
In Myriad Prediction Markets, 95% of respondents believe that Strategy will not sell Bitcoin by the end of the year. Myriad is a division of Dastan, Dastan’s parent company. decryption.
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