Sequans sells 1,200 Bitcoin to eliminate debt, double cash reserves
In brief
- Sequans sold 1,200 BTC in Q2, reducing holdings by 79.3% to 314 coins
- Convertible debt eliminated using Bitcoin-sale proceeds by May 28
- Cash reserves doubled from $10.6 million to $21 million
Bitcoin Sales Fund Debt Redemption
Sequans sold 1,200 BTC during the quarter, with the company announcing on May 28 that it had completed redemption of convertible debt using the proceeds. The move eliminated a liability that had constrained the balance sheet. Convertible debt fell to zero by quarter-end, freeing the company from repayment obligations.
Sequans recorded a $5.3 million realized net gain on the Bitcoin sales. That gain helped offset a $3 million unrealized impairment loss on the remaining coins, reflecting the volatility of holding crypto assets on a corporate balance sheet.
Cash Position Strengthens
Cash and cash equivalents rose to $21 million at June 30 from $10.6 million at March 31, nearly doubling the company's liquid position. The remaining 314 BTC were valued at $18.4 million and all of them were unrestricted and available for sale, giving Sequans flexibility to raise additional capital if needed.
The chipmaker reported preliminary unaudited quarterly revenue of $7.5 million and a net loss of $9.8 million for the period. The debt elimination and cash boost come as the company navigates a challenging operating environment in the semiconductor sector.
