In what may be the beginning of bottoming out in the cryptocurrency sell-off or the harbinger of greater brutality to come, or both, Paris-based Sequans (SQNS) became the first of this year’s hastily formed bitcoin treasury companies to dump part of its BTC stack.
In addition to its third-quarter earnings report, Sequans said Tuesday that it redeemed 50% of its July 2025 convertible debt by selling 970 bitcoins. cutting total debt from $189 million to $94.5 million.
Its bitcoin reserves now stand at 2,264 BTC, worth approximately $240 million, reducing its debt-to-net asset value (NAV) ratio from 55% to 39%.
CEO Georges Karam described the decision as tactical and market-driven, and emphasized that the company’s long-term bitcoin strategy remains intact. With less leverage and fewer debt covenants, Sequans plans to expand its options in the capital market, including its ADR repurchase program, possible preferred stock issuance, and yield-generating strategies using bitcoin.
Aftermath of the bubble
Sequans ADRs fell another 9% on Tuesday and 82% so far this year. The microcap semiconductor company adopted a bitcoin treasury strategy in July, joining a flurry of other companies trying to emulate the success of Michael Saylor’s strategy.
Almost everyone’s stock prices have plummeted even as the price of bitcoin (although it has dropped considerably lately) remains just 20% below its all-time high.
Sequans is part of a growing list of BTC treasury names that see their market caps trading well below the value of their bitcoin holdings. Not only does this make it difficult or impossible to raise capital for further accumulation, but it could also leave management with no choice but to sell BTC to pay down debt or return money to shareholders.
