Paris-based company Sequans, one of the Bitcoin treasury companies, sold Bitcoin for the first time to pay off its debts.
While Sequans’ sale came as Bitcoin fell, the company announced that it was selling to pay off debt.
At this point, Sequans stated in his statement that he paid 50% of his debt by selling 970 Bitcoins.
The debt of the chip company, listed on the New York Stock Exchange, fell from $189 million to $94.5 million with the payment made after this sale.
Sequans, a pioneer in adopting Bitcoin as the primary treasury reserve asset and a leading provider of cellular IoT semiconductor solutions, sold 970 Bitcoin.
As a result of this transaction, Sequans reduced its total debt from $189 million to $94.5 million. The company’s Bitcoin holdings also decreased from 3,234 BTC to 2,264 BTC.
Sequans CEO Georges Karam stated in a statement that their belief in Bitcoin remains unchanged, saying, “Our Bitcoin treasury strategy and our deep belief in Bitcoin remain unchanged. This sale was a tactical decision given current market conditions. It strengthens our financial foundation and, by removing certain debt covenant restrictions, allows us to execute a broader range of strategic initiatives to prudently develop and grow our treasury, utilizing Bitcoin as a long-term strategic reserve asset.”
Bitcoin’s decline, which began last night, continues, with the price dropping 3.5% in the last 24 hours to $103,000. This decline is attributed to diminished hopes for interest rate cuts following hawkish statements from Fed officials, the prolonged US federal government shutdown, and the large-scale liquidation of long positions.
*This is not investment advice.
Continue Reading: A Giant Company Launches a “Tactical Sell!” As Bitcoin (BTC) Falls! Here’s the Reason for the Sell!
