Shares in Sequans dropped by over 16% after selling 30% of its Bitcoin to redeem half of its convertible debt, reducing its BTC stash from 3,234 to 2,264. The move aimed to unlock shareholder value, cutting the company’s outstanding debt from $189 million to $94.5 million. Investors responded negatively, with shares falling 16.6%.

Sequans CEO Georges Karam emphasized that the Bitcoin treasury strategy remains unchanged despite the sale. The move was described as a tactical decision to strengthen the company’s financial foundation and pursue strategic initiatives. However, the market reaction was unfavorable, with Sequans stock plummeting by 16.6% following the sale.

Over 200 publicly traded companies now hold Bitcoin on their balance sheets, following the trend of institutional adoption of the cryptocurrency. While some companies initially saw stock rallies after announcing Bitcoin treasury strategies, many have experienced declines as initial excitement waned. Analysts have raised concerns about the sustainability of such strategies for financially weaker firms.

Sequans’ recent Bitcoin sale came after analysts noted a significant transfer of 2,264 BTC on Oct. 29, impacting the company’s standing as the 33rd largest corporate Bitcoin holder. Despite previously aiming to accumulate 100,000 BTC over five years, Sequans now holds a reduced stash following the recent sale.

Read more at Cointelegraph: Sequans Falls 16% After Selling 970 Bitcoin to Cut Debt