Chipmaker Wipes Out Debt with Bitcoin Sales

Sequans Communications, a cellular chipmaker, has successfully erased its convertible debt and doubled its cash reserves by selling a significant portion of its Bitcoin holdings. The company's treasury fell by 1,200 BTC during Q2, leaving it with 314 unrestricted coins at June 30.

The proceeds from the sale helped Sequans redeem its remaining convertible debt, which totaled $94.5 million in principal. By April 30, the company held 1,114 BTC, including 817 pledged against $35.9 million of remaining debt.

Sequans reported a net loss of $9.8 million for the quarter, but its Bitcoin sales generated a realized net gain of $5.3 million alongside an unrealized impairment loss on the investment of $3 million.