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Stock impact report

How company bets on bitcoin can backfire [Yahoo! Finance]

Sequans Communications S.A. American Depositary Shares (each representing one hundred (100) Ordinary Shares) (SQNS) 
Last sequans communications s.a. american depositary shares (each representing one hundred (100) ordinary shares) earnings: 4/23 06:00 am Check Earnings Report
US:NYSE Investor Relations: sequans.com/investors
Company Research Source: Yahoo! Finance
Below AFP explains what happens to these bitcoin-buying firms when prices drop. - Why accumulate bitcoin? - Bitcoin surged this year, reaching a record above $126,000 in October. Companies began buying and holding bitcoin to diversify their cash reserves, protect against inflation or attract investors chasing high returns. Some were already linked to the cryptocurrency, such as exchanges or "mining" firms that use powerful computers to earn bitcoins as rewards. Others from unrelated industries also started buying in, boosting demand and driving its price even higher. - Why is buying risky? - Many companies borrowed money to buy bitcoin, betting that its price would keep rising. Some relied on convertible bonds, which offer lower interest rates while giving lenders the option to be repaid in shares instead of cash. But problems can emerge if a company's share price falls -- for example, if a drop in the bitcoin price makes its business model less appealing. Investo Show less Read more
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