Bitcoin-focused companies like Sequans Communications are reducing debt by using Bitcoin reserves as part of their treasury strategies. Sequans sold 970 BTC worth $94.5 million, cutting its liabilities by 50% and lowering its debt-to-NAV ratio to 39%. Despite this move, the company’s stock fell 82% in a year.
The trend is being seen among listed companies in Hong Kong that are increasingly using Bitcoin as strategic reserves. Meitu Corporation recently increased its Bitcoin stash with a $5.24 million acquisition. Analysts say companies holding Bitcoin balance immediate financial needs with long-term exposure to this volatile asset class.
However, the use of Bitcoin as a treasury asset also highlights the risks associated with it. Sequans’ remaining Bitcoin provides some protection against price swings, but its market cap now trades below its Bitcoin NAV. Similar trends are being seen at other companies.
Hong Kong’s regulatory landscape is adjusting to ease crypto rules and attract global capital. The move reflects the city’s efforts to become a leading center for digital asset innovation.
Source: https://www.bitget.com/news/detail/12560605047463