Sequans transfers $111M in Bitcoin to Coinbase

Sequans Communications’ Bitcoin treasury firm has transferred 970 BTC, worth approximately $111 million, to Coinbase, based on on-chain ￰0￱ marks the first outbound transaction since the firm began accumulating Bitcoin, sparking speculations on whether there is an impending sale or a custody ￰1￱ Nasdaq-listed semiconductor and BTC treasury firm now holds roughly 2,264 BTC, worth around $255 million at the current ￰2￱ Sequan stock has shed approximately 27% since it initiated its Bitcoin treasury strategy, reflecting a growing investor lack of confidence in the risk implications associated with Bitcoin exposure. Sequans’ stock drops roughly 60% YoY Sequans Communications, which manufactures 5G/4G IoT semiconductor devices, initiated its Bitcoin treasury strategy in early July through a strategic investment valued at $384 ￰3￱ to a Cryptopolitan report , the company raised capital through private placement offerings of debt and ￰4￱ SQNS stock rallied over 27% after the announcement, following the growing trend of institutional accumulation of BTC as a hedge against balance sheet ￰5￱ on blockchain analytics data from Arkham Intelligence, Sequans has made its first significant outbound transaction since the beginning of BTC accumulation in ￰6￱ 970 BTC transferred earlier this week was directed to the Coinbase exchange, signaling a selling ￰7￱ move has prompted speculations that Sequans could be preparing to liquidate part of its holdings or instead for an operational or custody reorganization ￰8￱ Prime account provides institutional custody and over-the-counter (OTC) trading services designed to minimize market ￰9￱ the time of publication, Bitcoin had maintained a moderate price action with a 1% drop over the past 24 ￰10￱ was trading at $112,80.96, with an 11% increase in its average 24-hour trading volume, which reached $65.6 ￰11￱ reaction so far suggests that the price action hasn’t been triggered much.

Sequans’ Bitcoin treasury strategy was intended to provide exposure to BTC as a balance sheet diversification strategy, similar to that of MicroStrategy, Tesla, and ￰12￱ model, however, has drawn skepticism from investors who are wary of the volatile nature and uncertainty surrounding the crypto ￰13￱ events have triggered a sustained decline of roughly 60% in Sequans’ stock since the launch of its Bitcoin treasury strategy in ￰14￱ July, the stock jumped to around $53 but immediately began a sustained decline to its current price of $7.83, representing a 61.9% drop over the past six months and an 18% drop over the past ￰15￱ sustained stock downtrend has reflected a market caution toward publicly listed firms that hold volatile digital ￰16￱ Bitcoin treasuries hit 4.05M BTC amid Sequans asset movements The IoT semiconductor manufacturer launched a 10% share buyback program in late September, authorizing the purchase of up to 1.57 million American Depositary ￰17￱ its stock downtrend, the buyback was intended to signal balance sheet confidence in its Bitcoin treasury strategy and long-term commitment to value ￰18￱ transfer of BTC to Coinbase coincided with the exchange’s third-quarter earnings ￰19￱ reported strong results in Q3, with its revenue jumping 44% year over year to $1.79 billion and its trading volume rising to $299 ￰20￱ institutional adoption of crypto assets has fueled growth, driving the exchange’s revenue ￰21￱ and service fees, including custody fees, grew to $712 million.

Sequan’s move could be interpreted as a shift towards Coinbase’s custody, which, based on DebutInfoTech analysis , has attracted roughly 15% of the institutional client base holding Bitcoin due to its custodial security and compliance ￰22￱ the growth in institutional flow towards Coinbase custody service, the exchange faces scrutiny over fee compression and regulatory challenges under the ￰23￱ and Exchange Commission and MiCA ￰24￱ far, Strategy is the top Bitcoin treasury firm with 640,808 BTC holdings based on on-chain data , leaving Sequans at the 32nd position with 2,264 BTC ￰25￱ BTC held by treasury firms stands at 4.05 million, representing 5.73% of the total ￰26￱ a premium crypto trading community free for 30 days - normally $100/mo.