Sequans Becomes First Bitcoin Treasury Firm to Sell Holdings Amid Market Strain
Sequans Communications, a fabless semiconductor firm that adopted Bitcoin (BTC) as a reserve asset, has offered 30% of its holdings to scale back convertible debt.
This marks the primary occasion of a BTC digital asset treasury (DAT) agency promoting its holdings. The transfer has sparked larger scrutiny of digial asset treasury methods.
Sequans Communications Sells Bitcoin Holdings to Cut Debt
Sequans Communications started accumulating Bitcoin in July 2025. The agency continued to make modest purchases over the previous few months. On November 4, Sequans launched its preliminary monetary outcomes for the third quarter of 2025.
In it, the corporate revealed that it has sold 970 Bitcoins. The sale was made to pay down half of its $189 million convertible debt, issued in July 2025.
Sequans’ Bitcoin reserves now stand at 2,264 BTC, valued at roughly $230 million at present market costs. Despite the setback, CEO Dr. Georges Karam said Sequans stays dedicated to its Bitcoin treasury technique, viewing it as a car for long-term worth.
“Sequans has taken a proactive and disciplined method to managing its steadiness sheet and lowering half of its debt by opportunistically leveraging a portion of its Bitcoin holdings. This initiative has enhanced our monetary flexibility, meaningfully decreased our debt-to-NAV ratio, and boosted our potential to execute our buyback program, whereas nonetheless preserving long-term Bitcoin treasury optionality,” Karam stated.
The transfer got here amid broader monetary strain for the agency. In Q3, Sequans reported an working lack of $20.4 million and a web lack of $6.7 million. Revenue fell to $4.3 million, down 47.3% from the earlier quarter and 57.5% year-over-year.
“The working loss within the third quarter of 2025 included an $8.2 million unrealized loss on impairment of the worth of our Bitcoin funding, which was marked to market,” the agency added.
Risks and Market Implications of Corporate Bitcoin Treasuries
For now, Sequans is the one BTC treasury agency to promote a part of its Bitcoin holdings. Still, the present market setting, the place BTC costs remain under pressure, raises questions in regards to the sustainability of Bitcoin-centric treasury strategies in periods of operational and market stress.
Analyst Nic Carter instructed digital asset treasuries might promote BTC for USD as the dollar strengthens and Bitcoin weakens.
A broader wave of promoting, nonetheless, might have extreme penalties. Distressed liquidations by treasury corporations would inject a big provide of Bitcoin into the market, intensifying promoting strain and additional eroding confidence.
Analysts additionally warn that such company liquidations might exacerbate market downturns and set off a shift in sentiment towards capitulation.
“We’ve entered into ‘worry’. Once the DATs blow up, we get ‘capitulation,’” a market watcher added.
While the market could stand up to restricted offloading from smaller Bitcoin treasury corporations, a protracted downturn might check bigger gamers as nicely. This raises the query: might main holders like Strategy comply with swimsuit? For now, analysts view that situation as unlikely.
“Would be one hell of a sustained bear market to see any liquidation for Strategy. Bitcoin would have to carry out horribly,” The Bitcoin Therapist said.
BeInCrypto beforehand reported that whereas Strategy’s construction permits it to weather market declines, its imitators is probably not as resilient. Experts told BeInCrypto in late October that the following bear market will possible weed out weaker members, leaving solely well-capitalized corporations standing.
The publish Sequans Becomes First Bitcoin Treasury Firm to Sell Holdings Amid Market Strain appeared first on BeInCrypto.
