Sequans Communications, a publicly traded Internet of Things (IoT) chipmaker, has sold 970 BTC from its corporate treasury to strengthen its financial position. The sale allowed the company to cut its debt from $189 million to $94.5 million, though it affirmed its commitment to a long-term Bitcoin accumulation strategy.

A Tactical Decision

The transaction reduced the company’s Bitcoin holdings from 3,234 BTC to 2,264 BTC, with a current net asset value of approximately $240 million. According to CEO Georges Karam, this was a tactical decision designed to unlock shareholder value in the current market. He emphasized that the company’s core Bitcoin strategy and deep conviction in the asset remain unchanged, stating the move puts Sequans in a better position to expand its holdings in the future.

With a market capitalization of $95 million, the company was trading at a discount compared to its digital asset holdings. The sale improved its financial standing by reducing its debt-to-net-asset-value ratio from 55% to a more favorable 39%.

Treasury Firms and Bitcoin Sales

While most publicly traded companies holding Bitcoin on their balance sheets rarely sell, it isn’t an unprecedented event. The common strategy is to steadily accumulate BTC to boost share price. For example, the firm Strategy sold 704 BTC in December 2022 but quickly repurchased the assets.

However, some companies, particularly smaller-cap treasury firms, occasionally sell portions of their Bitcoin for cash flow. This is most common among Bitcoin miners, who routinely sell their mined BTC to cover significant operating expenses, with sales sometimes exceeding their production.