Sequans redeems half of convertible debt using Bitcoin sale proceeds

Sequans Communications S.A. (NYSE: SQNS) announced it redeemed 50% of convertible debt from its July 2025 offering by selling 970 Bitcoin. The transaction reduced the company's total outstanding debt from $189 million to $94.5 million.

The cellular IoT semiconductor provider's Bitcoin holdings decreased from 3,234 BTC to 2,264 BTC following the sale. Based on current market prices, the company estimates its Bitcoin net asset value at approximately $240 million, lowering its debt-to-NAV ratio from 55% to 39%.

The debt reduction is expected to enhance the company's previously announced American Depositary Shares buyback program. Sequans stated the move aims to increase its Bitcoin per share metrics under current market conditions.

"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 company indicated the enhanced balance sheet flexibility positions it to pursue future capital markets initiatives, including the ADS buyback program, potential preferred share issuance, and yield generation on Bitcoin holdings.

Sequans describes itself as a pioneer in adopting Bitcoin as its primary treasury reserve asset. The company's strategy involves acquiring and holding Bitcoin using proceeds from equity and debt offerings, operational cash flow, and intellectual property monetization.

Founded in 2003 and headquartered in France, Sequans operates globally with offices across multiple countries, providing wireless 4G/5G cellular technology for Internet of Things applications.

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