A significant step has been taken by the Paris-based semiconductor company Sequans Communications, which has decided to sell off a substantial portion of its Bitcoin holdings. The firm has offloaded nearly 970 BTC—approximately one-third of its total Bitcoin reserves—as part of a strategic move to reduce its debt and improve its financial health amidst a cooling crypto market.
The company announced this decision on Tuesday, revealing that the sale was instrumental in facilitating the redemption of 50% of its convertible debt, resulting in a reduction of liabilities from $189 million to $94.5 million. This sale, estimated at approximately $94.5 million, reduces Sequans’ Bitcoin treasury from 3,234 BTC to 2,264 BTC. At current market prices, the remaining holdings are valued at around $232 million.
Decreasing its debt-to-net-asset-value ratio from 55% to 39%, the sale has been characterized by management as a “strategic asset reallocation.” CEO Georges Karam emphasized this move as tactical rather than a shift in the company’s overall Bitcoin treasury strategy. “Our Bitcoin treasury strategy and deep conviction in Bitcoin remain unchanged,” Karam stated, explaining that this decision aims to unlock shareholder value given the current market conditions.
The sale’s preliminary details emerged last week with on-chain data indicating a transfer of nearly 1,000 BTC to a Coinbase address, which Sequans confirmed was part of its broader strategy to enhance financial flexibility and address certain debt covenant constraints. Following this announcement, Sequans’ stock price dropped to around $6.20, reflecting a loss of more than 56% since the company initiated its Bitcoin treasury strategy in July.
Bitcoin itself has faced challenges, slipping below the $103,000 mark, its lowest level in over four months, adding pressure to corporations heavily invested in leveraged Bitcoin positions. The reduction in debt will provide Sequans with greater capacity to engage in its American Depositary Share (ADS) buyback program, issue preferred shares, and potentially earn yields on its remaining Bitcoin holdings. Currently, the company is maintaining 1,294 BTC as collateral for its outstanding debts.
Following the recent sale, Sequans’ ranking among companies with Bitcoin treasuries has changed, dropping from 29th to 33rd position. The company articulated that this latest move facilitates a “more prudent leverage ratio,” ensuring responsible development and growth of its treasury with Bitcoin as a long-term reserve asset.
Sequans entered the Bitcoin treasury landscape in June 2025, having raised $385 million through various financial instruments in an effort reminiscent of MicroStrategy’s leveraged accumulation approach. Initially, in July, Sequans expanded its holdings by acquiring 1,264 BTC for about $150 million. Subsequently, the company announced plans in August to raise additional funds through an equity program, aspiring to accumulate 100,000 BTC by 2030.
However, the decision to sell now underscores the financial pressure that Bitcoin treasury companies are feeling as the cryptocurrency market experiences a downturn. Falling Bitcoin prices have adversely affected stock premiums, complicating conditions for companies to issue new equity or convertible debt to facilitate further acquisitions. Recent market trends indicate institutional accumulation of Bitcoin has fallen below daily mining supply for the first time in seven months.
In the current landscape, companies leveraging debt for Bitcoin accumulation are particularly vulnerable during market downturns, as their stock valuations tend to decline more rapidly than Bitcoin’s price. This has prompted firms like Japan’s Metaplanet and MicroStrategy to rethink their funding strategies and opt for share buybacks to stabilize their performance.
As per recent data, approximately 4.05 million BTC, constituting about one-fifth of the total supply, are now held in corporate and institutional treasuries, marking a 4% increase over the past month. Nearly 60% of this amount is held by public companies, predominantly from the United States, including Strategy, Marathon, and Coinbase.
