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In what may be the beginning of a dip in the crypto sell-off or a precursor to more brutality to come, or both, Paris-based Sequans (SQNS) has become the first of this year’s bitcoin treasure trove companies to unload some of their BTC stack.
Along with its third quarter earnings report, Sequans Tuesday he said he did not redeem 50% of its convertible debt of July 2025 by selling 970 bitcoin cutting total debt from $189 million to $94.5 million.
Its bitcoin reserves are now at 2,264 BTC, worth about $240 million, reducing the debt to net asset value (NAV) ratio from 55% to 39%.
CEO Georges Karam described the decision as tactical and driven by the market, emphasizing that the company long term bitcoin strategy remain intact. With less leverage and fewer debt covenants, Sequans plans to expand its capital market options, including its ADR buyback program, the potential issuance of preferred stock, and yield-generating strategies using bitcoin.
Bubble later
Sequans ADRs are lower by another 9% on Tuesday and 82% year to date. The microcap semiconductor company pivoted to a bitcoin treasury strategy in July, joining a rush of other firms trying to emulate the success of Michael Saylor’s strategy.
The share prices of almost all have collapsed even as the price of bitcoin – although it has been decreased very late – remains only 20% below its record.
Sequans finds itself part of a growing list of BTC treasure names seeing their market capitalizations trade well below the value of their bitcoins. This not only makes it impossible to raise capital for further accumulation, but also could leave the management with no choice but to sell BTC to pay the debt or return the money to the shareholders.
