Sequans Communications said Tuesday it sold about 970 bitcoin to redeem half of its outstanding convertible debt, describing the move as a “strategic asset reallocation” to strengthen its balance sheet. The Paris-based semiconductor maker used the proceeds to pay down $94.5 million in debt issued in July when it launched its bitcoin-treasury program. The sale reduced Sequans’ holdings from 3,234 BTC to 2,264 BTC, worth roughly $232 million at current prices, and lowered its debt-to-net-asset ratio from 55% to 39%. The transaction makes Sequans the first publicly listed bitcoin-holding company to substantially reduce its position since the start of the corporate-treasury wave in 2021, according to Bitcoin Treasuries data, which now ranks Sequans No. 33 among public bitcoin holders, down from No. 29. Onchain analysts spotted the sale last week after a wallet linked to Sequans transferred nearly 1,000 BTC to a Coinbase address. “Our bitcoin treasury strategy remains unchanged,” Chief Executive Georges Karam said in a statement. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
Investor Takeaway
Sequans joins a short list of corporate bitcoin holders adjusting exposure as debt costs rise and digital-asset prices weaken. The move trims leverage but could unsettle investors who viewed its holdings as long-term.
Balance-Sheet Effects and Market Reaction
Sequans said the debt reduction would increase flexibility for its American Depositary Share buyback plan and a possible preferred-share issue, while maintaining “long-term treasury optionality.” The company began its bitcoin-reserve strategy in June, raising $385 million through debt and equity offerings arranged by Swan Bitcoin. The approach mirrored MicroStrategy’s leveraged model of financing bitcoin purchases with securities issuance. The Nasdaq-listed stock traded near $6.20 on Tuesday, down about 56% since the start of its bitcoin program. Bitcoin itself slipped below $101,000 during the session, touching four-month lows as selling intensified across crypto markets.
Market Sell-Off and Trader Commentary
Analysts said Sequans’ sale came amid a wider bout of forced liquidations following the Oct. 10 crypto market slump that erased an estimated $20 billion in bitcoin positions. Data from Hyblock shows leveraged long positions clustered around the $100,000 level, with limited liquidity below until about $88,000. Popular trader HORSE posted a chart suggesting a possible bottom near that zone. “Maybe you get a trap at this low, but if not, these are the levels I’m looking toward for Bitcoin,” he wrote on X. “You want to see $100 K get front-ran, because big round numbers like that, if traded, get smoked on the return just like on the way up.” Crypto commentator Scott Melker added that bitcoin “has definitively lost the weekly 50-MA as support four times in history,” each followed by a test of the 200-day moving average. “Price is currently $700 above the 50 MA. The 200 MA is sitting around $55,000 and rising,” he said.
Investor Takeaway
Heavy liquidations and institutional stress suggest further downside risk for bitcoin in the near term, but traders are watching the $95 K–$100 K band for potential stabilization.
Sequans’ Strategy in Focus
Sequans’ bitcoin-treasury plan drew attention in June when the company announced it would use proceeds from convertible-debt and equity sales to hold bitcoin as a reserve asset, seeking to diversify cash holdings. The model was billed as a corporate hedge against inflation and currency risk, though critics said it exposed shareholders to crypto volatility. Tuesday’s sale underscores how quickly market swings can influence treasury decisions. While management insists its “conviction in bitcoin remains unchanged,” Sequans’ cutback illustrates the limits of leveraged accumulation when asset values fall and debt costs rise. The firm’s remaining 2,264 BTC continue to represent one of the larger corporate holdings outside the United States. As bitcoin’s downturn pressures balance sheets, investors will watch whether other treasury holders follow Sequans’ lead in reducing exposure or maintain long-term accumulation strategies despite market turbulence.