Paris-based semiconductor firm Sequans Communications has taken a notable step amid a cooling cryptocurrency market by selling nearly 970 Bitcoin, which constitutes about a third of its total holdings. This strategic decision marks Sequans as the first publicly traded Bitcoin treasury company to liquidate part of its reserves in response to pressing financial needs.
The transaction, valued at approximately $94.5 million, allows Sequans to redeem 50% of its outstanding convertible debt, thereby reducing its liabilities from $189 million down to $94.5 million. Following the sale, Sequans’ Bitcoin treasury decreased from 3,234 BTC to 2,264 BTC, valued around $232 million at current market prices. This action significantly lowers the company’s debt-to-net-asset-value ratio from 55% to 39%. Sequans management characterized this move as a “strategic asset reallocation” intended to enhance financial flexibility.
Chief Executive Officer Georges Karam emphasized that the decision was tactical and did not signify a shift in the company’s overall Bitcoin strategy. “Our Bitcoin treasury strategy and deep conviction in Bitcoin remain unchanged,” Karam stated, explaining that the transaction was aimed at unlocking shareholder value under current market conditions.
On-chain data indicated the transaction last week when a wallet associated with Sequans transferred nearly 1,000 BTC to a Coinbase address. This detail was confirmed by the company, which also noted that the sale is part of a broader initiative to strengthen its financial footing and alleviate certain debt covenant constraints. Following the announcement, Sequans’ stock traded at $6.20, reflecting a decline of more than 56% since the implementation of its Bitcoin-treasury strategy initiated in July.
Meanwhile, Bitcoin has dipped below $103,000, marking its lowest point in over four months, thereby intensifying the challenges faced by leveraged corporate holders. With the recent debt reduction, Sequans anticipates increased flexibility to pursue its American Depositary Share buyback program, issue preferred shares, and potentially generate yield from its remaining Bitcoin assets. The company’s remaining 1,294 BTC will continue to act as collateral for its outstanding debt.
As a result of this sale, Sequans has fallen from being the 29th-largest Bitcoin holder to the 33rd position among public companies with Bitcoin reserves. The firm has asserted that its latest financial maneuvers provide a more prudent leverage ratio and position it to responsibly grow its Bitcoin treasury as a long-term strategic asset.
Sequans forayed into the Bitcoin treasury space in June 2025, raising $385 million through debt and equity placements with guidance from Swan Bitcoin. The company’s approach mirrored MicroStrategy’s leveraged accumulation model, focusing on using capital markets to bolster its Bitcoin reserves. Initially amassing 1,264 BTC for approximately $150 million in July, the total had risen above 2,300 BTC by that time. Furthermore, Sequans announced plans in August to raise up to $200 million via an at-the-market equity program to expand its Bitcoin holdings, driven by its long-term goal of reaching 100,000 BTC by 2030.
However, this recent sell-off highlights the increasing financial pressures burdening Bitcoin treasury firms as the crypto market continues to cool. Falling Bitcoin prices have diminished stock premiums, complicating efforts to issue new equity or convertible debt for acquisitions. Analysts note that firms utilizing debt to accumulate Bitcoin face heightened vulnerability during such downturns, often seeing their stock valuations decline at a faster pace than Bitcoin itself, which exacerbates leverage risks.
Globally, corporate and institutional treasuries now hold approximately 4.05 million BTC, representing roughly one-fifth of the total Bitcoin supply, with a 4% increase observed in the last 30 days. Public companies constitute nearly 60% of this total, led by U.S.-based firms such as MicroStrategy, Marathon, and Coinbase, reflecting a growing trend in corporate adoption of Bitcoin as part of financial strategies.
