Chipmaker trims crypto holdings to reduce $189M debt load while reaffirming long-term Bitcoin strategy
Semiconductor manufacturer Sequans Communications saw its shares fall more than 16% on Tuesday after disclosing it had sold 970 Bitcoin, representing about 30% of its total holdings, to redeem half of its $189 million in outstanding convertible debt.
The Paris-based firm, known for its IoT and 5G chipsets, described the move as a âstrategic asset reallocationâ aimed at strengthening its financial foundation amid volatile crypto markets.
âOur Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,â said Georges Karam, CEO of Sequans. âThis transaction was a tactical decision to unlock shareholder value given current market conditions.â
Sequans Redeems 50% of Convertible Debt Through Strategic Asset Reallocation. This move opportunistically leverages Bitcoin holdings to enhance financial flexibility, reduce Debt-to-NAV ratio, and boost buyback capacity while preserving long-term treasury optionality. $SQNS Learn⊠pic.twitter.com/bTbVMQGC2T
Following the sale, Sequansâ Bitcoin balance dropped from 3,234 BTC to 2,264 BTC, reducing the value of its crypto treasury to just over $229 million at current market prices. The proceeds were used to redeem $94.5 million of the companyâs debt, halving its previous liabilities and easing pressure from debt covenant constraints.
Karam said the move provides Sequans âthe flexibility to pursue broader strategic initiatives,â adding that Bitcoin remains the companyâs long-term reserve asset.
Despite the debt reduction, investors reacted negatively. Sequans (SQNS) stock fell 16.6% to $5.92, continuing its steep slide from a 2025 peak of $53.90, reached shortly after the company first unveiled its Bitcoin accumulation plan in June.
Investor confidence in Bitcoin treasuries tested
Sequans joins over 200 publicly traded companies holding Bitcoin on their balance sheets, a trend that accelerated after the launch of spot Bitcoin ETFs in the U.S. last year.
However, analysts warn that crypto treasury strategies are increasingly under scrutiny.
âCompanies adopting Bitcoin reserves during bullish phases are finding it difficult to sustain valuations once market euphoria fades,â said Ethan Ross, senior analyst at CryptoMarkets Advisory. âUnless these firms have solid fundamentals, the Bitcoin narrative alone wonât support their stock prices.â
Sequansâ sale was first flagged by blockchain analysts last week, when a transfer of 970 BTC appeared on-chain â one of the largest Bitcoin sales by a listed company this quarter.
The firm is now the 33rd largest corporate Bitcoin holder, down four positions from its mid-July ranking.
Sequansâ decision highlights the delicate balance between leveraging digital assets for corporate strategy and maintaining financial stability â a test many crypto-treasury firms are now facing as Bitcoinâs price continues to fluctuate.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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