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Hassan Shittu
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Hassan Shittu
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Paris-based semiconductor firm Sequans Communications has sold nearly 970 Bitcoins, about a third of its total shares, in an attempt to cut debt and stabilize its balance sheet, becoming the first publicly traded Bitcoin treasury company to dump its reserves in the cooling crypto market.
The company announcefrom Tuesday that the sale financed the repayment of 50% of its convertible debt, thus reducing liabilities from $189 million to $94.5 million.
The transaction, valued at about $94.5 million, cuts Sequans’ Bitcoin hoard from 3,234 BTC to 2,264 BTC, worth about $232 million at current prices.
The move reduces its debt-to-net asset value ratio from 55% to 39%, which management described as a “strategic reallocation of assets.”
Sequans drops to 33rd largest Bitcoin holder after recent sell-off
Chief Executive Officer Georges Karam framed the decision as a tactic rather than a policy change. “Our Bitcoin treasure strategy and deep belief in Bitcoin remain unchanged,” Karam said.
“This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
Data on the first chain spotted the turn last week, when a wallet linked to Sequans transferred nearly 1,000 BTC to a Coinbase address.
The company confirmed the transaction on Tuesday, saying it was part of a broader effort to strengthen financial flexibility and remove certain debt covenant restrictions.
Sequans stock is traded around $6.20 after the announcement, more than 56% since he started his Bitcoin-treasury strategy in July.
Meanwhile, Bitcoin (BTC) it fell below $103,000, its lowest level in more than four months, adding to the pressure facing leveraged corporate holders.
Sequans said the debt reduction will give it more room to pursue its American Depositary Share (ADS) purchase program, issue preferred shares, and potentially generate returns on some of its remaining Bitcoin.
The company’s remaining 1,294 BTC will continue to serve as collateral for its outstanding debt.
The sale also exits Sequans’ position on Bitcoin Treasuries classification from No. 29 to No. 33 among public companies holding Bitcoin.
The company said its latest deleveraging move provides “a more prudent leverage ratio” and ensures it can “responsibly develop and grow its treasury with Bitcoin as a long-term strategic reserve asset.”
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following entered the Bitcoin treasury arena in June 2025, raising $385 million through debt and equity advised by Swan Bitcoin.
The company modeled its approach after MicroStrategy’s leveraged accumulation strategy, using capital market instruments to buy Bitcoin as a balance sheet reserve.
In July, Sequans added 1,264 BTC, valued at about $150 millionbringing their total to over 2,300 BTC at the moment.
The company followed this up with an August announcement that would raise up to $200 million Through a market equity program to further expand its participation, part of a long-term goal to reach 100,000 BTC by 2030.
However, the timing of the recent sell-off reflects the growing financial strain facing Bitcoin treasury companies as the crypto market cools.
Falling prices have eroded stock premiums, making it more difficult for companies to issue new equity or convertible debt to finance acquisitions.
According to market data, the institutional accumulation of Bitcoin fell below the daily mining supply in early November for the first time in seven months.
Analysts note that companies that use debt to accumulate Bitcoin are particularly exposed during recessions.
When the price of Bitcoin falls, its stock valuations tend to fall even faster, amplifying the risk of leverage.
Several companies, including Japan’s Metaplanet and MicroStrategy (now Strategy), have adapted by changing financing methods or buying shares to stabilize performance.
Globally, 4.05 million BTC, about a fifth of the total supply, are now held by corporate and institutional treasurers, a figure that has grown by 4% in the past 30 days, according to to Bitcoin Treasuries data.
Public companies account for nearly 60% of that total, led by US-based companies like Strategy, Marathon, and Coinbase.
