Paris-based semiconductor firm Sequans Communications has sold nearly 970 Bitcoin, about a third of its total holdings, in a bid to cut debt and stabilize its balance sheet, becoming the first publicly traded Bitcoin treasury company to offload its reserves amid a cooling crypto market.
The company announced on Tuesday that the sale has funded the redemption of 50% of its outstanding convertible debt, thereby reducing liabilities from $189 million to $94.5 million.
The transaction, valued at roughly $94.5 million, trims Sequans’ Bitcoin treasury from 3,234 BTC to 2,264 BTC, worth about $232 million at current prices.
The move lowers its debt-to-net-asset-value ratio from 55% to 39%, which management described as a “strategic asset reallocation.”
Sequans Drops to 33rd-Largest Bitcoin Holder After The Recent Sale
Chief Executive Officer Georges Karam framed the decision as tactical rather than a change in policy. “Our Bitcoin treasury strategy and deep conviction in Bitcoin remain unchanged,” Karam said.
“This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
On-chain data first spotted the shift 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 constraints.
Sequans’ stock traded around $6.20 following the announcement, down more than 56% since it began its Bitcoin-treasury strategy in July.
Source: Yahoo FinanceMeanwhile, Bitcoin (BTC) slipped 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) buyback program, issue preferred shares, and potentially generate yield on a portion of its remaining Bitcoin holdings.
The firm’s remaining 1,294 BTC continue to serve as collateral for its outstanding debt.
The sale also drops Sequans’ position on the Bitcoin Treasuries ranking from No. 29 to No. 33 among public companies holding Bitcoin.
Source: Bitcoin TreasuriesThe 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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Sequans entered the Bitcoin treasury arena in June 2025, raising $385 million through debt and equity placements advised by Swan Bitcoin.
The company modeled its approach after MicroStrategy’s leveraged accumulation strategy, using capital market instruments to purchase Bitcoin as a balance-sheet reserve.
In July, Sequans added 1,264 BTC, valued at approximately $150 million, bringing its total to over 2,300 BTC at the time.
The company followed that with an August announcement that it would raise up to $200 million through an at-the-market equity program to further expand its holdings, 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 firms as the crypto market cools.
Falling prices have eroded stock premiums, making it harder for companies to issue new equity or convertible debt to fund acquisitions.
According to market data, institutional Bitcoin accumulation fell below daily mining supply in early November for the first time in seven months.
Analysts note that firms using debt to accumulate Bitcoin are particularly exposed during downturns.
As Bitcoin’s price drops, its stock valuations tend to fall even faster, amplifying leverage risk.
Several companies, including Japan’s Metaplanet and MicroStrategy (now Strategy), have adapted by shifting funding methods or buying back shares to stabilize performance.
Source: Bitcoin TreasuriesGlobally, 4.05 million BTC, roughly one-fifth of the total supply, are now held in corporate and institutional treasuries, a figure that has grown 4% in the last 30 days, according to Bitcoin Treasuries data.
Public companies account for nearly 60% of that total, led by U.S.-based firms like Strategy, Marathon, and Coinbase.
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