Sequans Dumps 970 BTC to Slash Debt as Bitcoin Price Hits 4-Month Low – Is This a Red Flag?
Paris-based semiconductor agency Sequans Communications has offered almost 970 Bitcoin, about a third of its whole holdings, in a bid to minimize debt and stabilize its stability sheet, changing into the primary publicly traded Bitcoin treasury firm to offload its reserves amid a cooling crypto market.
The firm announced on Tuesday that the sale has funded the redemption of fifty% of its excellent convertible debt, thereby lowering 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, value about $232 million at present costs.
The transfer lowers its debt-to-net-asset-value ratio from 55% to 39%, which administration described as a “strategic asset reallocation.”
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Chief Executive Officer Georges Karam framed the choice as tactical moderately than a change in coverage. “Our Bitcoin treasury technique and deep conviction in Bitcoin stay unchanged,” Karam mentioned.
“This transaction was a tactical resolution geared toward unlocking shareholder worth given present market situations.”
On-chain information first spotted the shift final week, when a pockets linked to Sequans transferred almost 1,000 BTC to a Coinbase deal with.
The firm confirmed the transaction on Tuesday, saying it was a part of a broader effort to strengthen monetary flexibility and take away sure debt covenant constraints.
Sequans’ inventory traded around $6.20 following the announcement, down greater than 56% because it started its Bitcoin-treasury technique in July.
Meanwhile, Bitcoin (BTC) slipped beneath $103,000, its lowest degree in additional than 4 months, including to the strain dealing with leveraged company holders.
Sequans mentioned the debt discount will give it extra room to pursue its American Depositary Share (ADS) buyback program, concern most well-liked shares, and probably generate yield on a portion of its remaining Bitcoin holdings.
The agency’s remaining 1,294 BTC proceed to serve as collateral for its excellent debt.
The sale additionally drops Sequans’ place on the Bitcoin Treasuries ranking from No. 29 to No. 33 amongst public corporations holding Bitcoin.
The firm mentioned its newest deleveraging transfer supplies “a extra prudent leverage ratio” and ensures it might “responsibly develop and develop its treasury with Bitcoin as a long-term strategic reserve asset.”
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Sequans entered the Bitcoin treasury enviornment in June 2025, elevating $385 million by means of debt and fairness placements suggested by Swan Bitcoin.
The firm modeled its strategy after MicroStrategy’s leveraged accumulation technique, utilizing capital market devices to buy Bitcoin as a balance-sheet reserve.
In July, Sequans added 1,264 BTC, valued at approximately $150 million, bringing its whole to over 2,300 BTC on the time.
The firm adopted that with an August announcement that it would raise up to $200 million by means of an at-the-market fairness program to additional increase its holdings, a part of a long-term purpose to attain 100,000 BTC by 2030.
NYSE-listed @Sequans buys 1,264 Bitcoin for $150 million bringing whole holdings to 2,317 $BTC as company adoption surges 120% since July 2024.#Bitcoin #BTChttps://t.co/LlzHhB7sA8
— Cryptonews.com (@cryptonews) July 21, 2025
However, the timing of the latest sell-off displays the rising monetary pressure dealing with Bitcoin treasury corporations as the crypto market cools.
Falling costs have eroded inventory premiums, making it more durable for corporations to concern new fairness or convertible debt to fund acquisitions.
According to market information, institutional Bitcoin accumulation fell beneath each day mining provide in early November for the primary time in seven months.
Analysts be aware that corporations utilizing debt to accumulate Bitcoin are significantly uncovered throughout downturns.
As Bitcoin’s value drops, its inventory valuations have a tendency to fall even quicker, amplifying leverage danger.
Several corporations, together with Japan’s Metaplanet and MicroStrategy (now Strategy), have tailored by shifting funding strategies or shopping for again shares to stabilize efficiency.
Globally, 4.05 million BTC, roughly one-fifth of the entire provide, are actually held in company and institutional treasuries, a determine that has grown 4% within the final 30 days, according to Bitcoin Treasuries information.
Public corporations account for almost 60% of that whole, led by U.S.-based corporations like Strategy, Marathon, and Coinbase.
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