Sequans Falls 16% After Selling 970 Bitcoin to Cut Debt

Shares in Sequans fell more than 16% after it sold 30% of its Bitcoin to redeem half of its convertible debt, a move the semiconductor company described as a “strategic reallocation of assets.”

“Our Bitcoin treasure strategy and our deep belief in Bitcoin remain unchanged,” CEO of Sequans Georges Karam. he said on tuesday “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”

The sale cut the chip developer’s Bitcoin (BTC) stash from 3,234 BTC to 2,264 BTC, back from his aim to accumulate 100,000 BTC in the next five years. The proceeds of the sale were used to reduce its outstanding debt from $189 million to $94.5 million.

“It strengthens our financial foundation and removes certain debt covenant restrictions, which allows us to pursue a wider set of strategic initiatives to prudently develop and grow our treasury, with Bitcoin as a long-term strategic reserve asset,” added Karam.

The move was not well received by investors, with shares in Sequans (SQNS) falling 16.6% to $5.92 on Tuesday. It is now 89% of its 2025 high of $53.90, which was reached about a week later. presented his Bitcoin plans at the end of June.

More than 200 publicly traded companies now have Bitcoin on their balance sheets, continuing the trend of institutional Bitcoin adoption thereafter spot Bitcoin exchange-trading funds launched in the US last year.

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Many crypto treasury companies saw their stocks rally upon announcing the new strategy, but many are now diving in after the initial hype fades.

The declines in many companies have led analysts to question the sustainability of Bitcoin treasure strategies, especially those of companies that are not already in a strong financial position