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Sequans cuts Bitcoin holdings, clears convertible debt and boosts cash

In the second quarter, Sequans reduced its Bitcoin treasury 79.3%, leaving 314 BTC at June 30, and reported $21 million in cash as convertible debt fell to zero by quarter end.

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Sequans Communications cut its Bitcoin treasury by 79.3% during the second quarter, ending June 30 with 314 BTC, down from 1,514 BTC at March 31. CryptoSlate notes the chipmaker used Bitcoin-sale proceeds to eliminate its convertible debt and to strengthen liquidity.

The company had agreed in February to redeem the remaining $94.5 million principal of its convertible debt by June 1, and it said on May 28 that it completed the redemption using the proceeds. Between that announcement and June 30, its reported Bitcoin balance continued to decline, and at quarter end none of the 314 BTC was pledged.

Sequans valued its remaining coins at $18.4 million and said they were all unrestricted and available for sale. The company reported cash and cash equivalents of $21 million at June 30, up from $10.6 million at March 31, with convertible debt reduced to zero by quarter end.

In its second-quarter accounting, Sequans recorded a $5.3 million realized net gain on Bitcoin sales alongside a $3 million unrealized impairment loss on the investment. CryptoSlate also reports the firm posted preliminary unaudited revenue of $7.5 million and a net loss of $9.8 million for the quarter.

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