Sequans Shares Drop 16% After Selling 970 Bitcoin to Cut $189M Debt

• Sequans (SQNS) shares plunged 16.6% after selling 970 BTC
• The company used proceeds to cut its debt from $189M to $94.5M
• Bitcoin holdings dropped from 3,234 BTC to 2,264 BTC
• CEO insists the sale was a “tactical decision,” not a shift in Bitcoin strategy
• Shares now trade 89% below 2025 highs
• Analysts question the sustainability of Bitcoin treasury strategies
• Sequans now ranks as the 33rd largest corporate Bitcoin holder

Shares of Semiconductor firm Sequans (SQNS) plunged over 16% on Tuesday after the company announced it had sold 970 Bitcoin (BTC) to reduce its outstanding debt by half. The move — described as a “strategic asset reallocation” — sparked concern among investors, leading to a sharp decline in stock price.

According to a company statement, Sequans sold roughly 30% of its Bitcoin holdings, reducing its total stash from 3,234 BTC to 2,264 BTC. The proceeds were used to cut its $189 million convertible debt down to $94.5 million, significantly easing the company’s financial burden.

Despite the sale, CEO Georges Karam emphasized that Sequans remains deeply committed to Bitcoin as a long-term strategic reserve asset.

“Our Bitcoin treasury strategy and deep conviction in Bitcoin remain unchanged,” Karam said. “This was a tactical move to unlock shareholder value given the current market conditions.”

Karam added that the sale would strengthen the company’s balance sheet, remove restrictive debt covenants, and give Sequans greater flexibility to pursue new strategic initiatives.

However, the market reacted negatively. Sequans shares fell 16.6% to $5.92, marking an 89% drop from its 2025 peak of $53.90, which came shortly after the company first announced its Bitcoin accumulation plan in June.

More than 200 publicly listed firms now hold Bitcoin on their balance sheets, part of a broader wave of corporate Bitcoin adoption following the launch of spot BTC ETFs in the U.S. But while early announcements of Bitcoin treasury strategies often drove stock surges, many such firms have since seen sharp declines as market hype faded.

Analysts have raised concerns about the sustainability of Bitcoin treasury models — especially for companies without strong financial fundamentals. Sequans’ decision underscores the challenges of balancing debt reduction with crypto-based balance sheet strategies.

Interestingly, crypto analysts spotted the Bitcoin transfer a week before the announcement, noting a large 2,264 BTC wallet movement on October 29. With this sale, Sequans now ranks as the 33rd largest corporate Bitcoin holder, dropping four places since July.

Final Thought

Sequans’ decision to sell part of its Bitcoin treasury shows the tension between financial stability and long-term crypto conviction. While the company insists its Bitcoin vision remains unchanged, investors appear cautious — signaling that firms may need more than a bullish Bitcoin strategy to maintain market confidence in uncertain conditions.