Sequans Dumps Over 900 BTC as Bitcoin Drops to Four-Month Low: Is the Treasury Hype Over?

Quick Breakdown

• Sequans sells over 900 BTC to slash debt as Bitcoin dropped to a four-month low.
• Market dip sparks corporate crypto sell-offs, raising questions on long-term treasury confidence.
• Despite losses, Sequans defends its strategy as a move toward financial flexibility and stability.

Sequans’ Bold Treasury Move

Sequans Communications (NYSE: SQNS), a Paris-based fabless semiconductor firm, has announced the sale of about 970 BTC from its 3,234 Bitcoin reserve. The move has sparked discussion about the company’s strategy, its timing, and what it might signal for corporate Bitcoin treasuries going forward.

Sequans press release. Source: Sequans

The move was tied to Sequans redeeming half of its $189 million convertible debt issued earlier in July. After the sale, the company’s outstanding obligations were cut to around $94.5 million, while its Bitcoin holdings fell to roughly 2,264 BTC.

Sequans had earlier built its Bitcoin reserve using proceeds from the debt issuance. By redeeming half of that debt through this sale, the company has managed to reduce leverage and regain operational flexibility.

The rise of Bitcoin treasuries

Over the past few years, more companies have begun adding Bitcoin to their balance sheets as part of their treasury strategy. What started as a bold experiment has become a notable financial trend. Businesses began seeing Bitcoin price not just as an investment but as a tool for hedging inflation and aligning with the long-term value narrative of a scarce digital asset.

As this idea matured, it expanded beyond Bitcoin. Companies started adopting other crypto-assets as treasury holdings. Firms began to buy Ethereum (ETH), Solana (SOL), and BNB (BNB), giving them new ways to participate in blockchain ecosystems and earn crypto rewards.

One such example is SharpLink Gaming Ltd., which holds about 280,706 ETH. Similarly, Upexi Inc. reported a SOL treasury of over 2,106,989 SOL as of October 31, 2025.

The broader approach reflects how firms are balancing digital assets that offer not only long-term appreciation but also ecosystem participation and yield opportunities.

Sequans’ Bitcoin Strategy Unfolds

Sequans joined this expanding corporate landscape in mid-2025. On June 23, 2025, it announced a $384 million strategic investment, which included $195 million in equity and $189 million in convertible debentures.

Weeks later, on July 10, the company revealed it had purchased 370 BTC as part of a plan to exceed 3,000 BTC in total holdings. At the time, Sequans expressed confidence in Bitcoin’s long-term value, calling it “a store of value for shareholders.”

Bitcoin has fallen nearly 20% in the past 30 days, slipping below the $100,000 mark in early November, its lowest level in four months since June 2025. The decline comes as investors and traders continue to sell crypto, with total Bitcoin liquidations reaching $538 million, according to Coinglass data.

Crypto market liquidations. Source: Coinglass.

BTC traded at multi-month lows of around $100,000 in November, a level not seen since June. Ethereum has followed a similar path, dropping from highs above $4,300 in October to around $3,300 by early November, a decline of roughly 25%.

This downturn has led several major corporate holders to sell part of their treasuries. ETHZilla, one of the largest Ethereum treasury holders, reportedly sold a portion of its ETH reserves earlier this month amid market volatility.

These sales have raised questions about whether companies that bought Bitcoin at higher prices are pressured to offramp crypto to fiat.

Strategic Intent or Market Pressure?

Despite this, Sequans’ CEO, Georges Karam, emphasized that the sale was not driven by Bitcoin’s price decline. He stated that the move was a calculated step to reduce debt and strengthen the company’s financial standing. “Our Bitcoin treasury strategy and deep conviction in Bitcoin remain unchanged,” Karam said. “This transaction was a tactical decision aimed at unlocking shareholder value under current market conditions.”

The company also clarified in its press release that the debt redemption would enhance its American Depositary Share (ADS) buyback program. Reducing the debt removes certain restrictive covenants, giving the firm greater freedom to optimize its treasury strategy. This move not only strengthens financial flexibility but also creates room for more efficient capital allocation, ultimately benefiting shareholders.

Following the announcement, investors reacted quickly, with mixed interpretations of Sequans’ active treasury management strategy.

Sequans’ recent actions have significantly improved its financial health, especially in terms of its debt-to-net asset value (NAV) ratio. After selling 970 BTC to repay half its convertible debt, the company lowered its debt-to-NAV ratio from roughly 55% to about 39%, based on a Bitcoin NAV estimated at $240 million. This improvement makes Sequans financially stronger and less risky, with better flexibility for managing both digital and fiat assets.

Sequans Bitcoin treasury. Source: Sequans

However, despite this positive restructuring, the company’s stock saw a steep drop shortly after the announcement. Shares fell about 16.6%, trading near $5.92 on November 4, 2025, down from around $7.10 the previous day. The decline shows investors’ cautious stance amid broader market uncertainty. Still, the improved debt ratio positions Sequans as a more stable company in the long run, especially in an environment where balance sheet resilience is increasingly valued.

Conclusion

Sequans’ strategy reflects a shift away from the typical “HODL” (Hold on for dear life) approach many crypto-treasury companies take. Instead of holding Bitcoin indefinitely through market cycles, Sequans has shown how active treasury management can be used as a financial tool to reduce debt, enhance liquidity, and improve shareholder value.

By managing its crypto holdings dynamically rather than passively, Sequans demonstrates how corporate treasuries can use digital assets as part of broader capital management plans. The company’s approach may influence how lenders and investors evaluate crypto-treasury models, offering a glimpse of what more sophisticated digital balance sheets could look like in the future.