Finance

Bitcoin Sale Spurs Debt Relief for Sequans, But Will It Unlock Shareholder Value?

Sequans sold Bitcoin to cut debt, but shares fell, despite reaffirming their Bitcoin strategy.

November 4, 2025, 7:26 PM

The Sequans logo illuminated on a smartphone screen, symbolizing semiconductor and chip technology. By PJ McDonnell / Shutterstock.com.

Executive Summary

Sequans sold 970 Bitcoin from its treasury to reduce its outstanding debt by 50%, bringing it down from $189 million to $94.5 million, while reaffirming its long-term Bitcoin strategy.

Following the announcement of the strategic debt reduction, Sequans’ stock (SQNS) closed down 16.6% on Tuesday afternoon Eastern Time.

Sequans’ move highlights the growing trend of over 200 publicly traded companies adopting Bitcoin treasury strategies, a practice pioneered by Strategy, which comes with inherent risks from crypto volatility that have led to share price drops for some firms.

The Story So Far

Sequans, having recently adopted a digital asset treasury strategy with a long-term conviction in Bitcoin, strategically sold a portion of its holdings to reduce outstanding debt by 50% and strengthen its financial foundation. This move reflects a broader trend among over 200 publicly traded companies that hold Bitcoin in their corporate treasuries, aiming to enhance shareholder value despite the inherent volatility and risks associated with such digital asset strategies.

Why This Matters

Sequans’ strategic use of its Bitcoin treasury to significantly reduce debt highlights a growing, albeit still nascent, trend of companies leveraging digital assets for financial restructuring and strengthening their balance sheets. However, the immediate negative market reaction to the sale underscores the persistent investor skepticism and the inherent volatility risks associated with corporate crypto holdings, indicating that such strategies, while potentially beneficial for debt management, do not guarantee positive stock performance or immediate market approval.

Who Thinks What?

Sequans CEO Georges Karam views the sale of Bitcoin as a “tactical decision” to reduce debt by 50%, strengthen the company’s financial foundation, and unlock shareholder value, while reaffirming Sequans’ long-term conviction in Bitcoin as a reserve asset.

The stock market reacted negatively to Sequans’ Bitcoin sale, with its stock closing down 16.6%, and analysts have noted a declining multiple to Net Asset Value for companies like Strategy, indicating reduced premium for their crypto holdings.

Experts and the U.S. Securities and Exchange Commission (SEC) caution about the inherent risks of crypto volatility for corporate treasuries and have investigated potential market manipulation following significant stock surges tied to digital asset purchases.

Sequans, a French semiconductor firm listed on the New York Stock Exchange, sold 970 Bitcoin from its treasury to reduce its outstanding debt. This move comes just four months after the company adopted a digital asset treasury strategy. Following the sale, Sequans’ Bitcoin holdings have decreased from 3,234 BTC to 2,264 BTC, which are now valued at approximately $228 million.

Strategic Debt Reduction Amid Market Conditions

The Paris-based company announced on Tuesday that the sale cut its outstanding debt by 50%, bringing it down from $189 million to $94.5 million. Despite the strategic sale, Sequans’ stock (SQNS) closed down 16.6% on Tuesday afternoon Eastern Time.

Sequans CEO Georges Karam stated that the company’s “Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged.” He described the transaction as a “tactical decision” aimed at unlocking shareholder value given current market conditions. Karam added that the move strengthens the company’s financial foundation and removes certain debt covenant constraints, enabling a wider range of strategic initiatives to grow its treasury with Bitcoin as a long-term reserve asset.

Broader Context of Corporate Bitcoin Holdings

Sequans is one of over 200 publicly traded companies that have adopted a strategy of holding Bitcoin in their corporate treasuries. This approach was notably pioneered by Nasdaq-listed Strategy (formerly MicroStrategy), which began accumulating Bitcoin in August 2020 to enhance shareholder returns.

Strategy has amassed the world’s largest corporate crypto treasury, spending approximately $47.4 billion on Bitcoin to acquire 641,205 coins, currently valued at about $64 billion. This allows investors to gain exposure to Bitcoin through equity without directly purchasing the digital asset.

Risks and Market Reactions

While some companies have followed suit, buying Bitcoin, Ethereum, and other digital assets to potentially boost stock prices, experts have cautioned about the inherent risks of crypto volatility. Many firms that have integrated digital assets into their treasuries have seen their share prices drop.

The U.S. Securities and Exchange Commission (SEC) notably halted trading of digital advertising firm QMMM Holdings in September to investigate “potential manipulation” after its stock surged over 2,100% following an announcement of Bitcoin, Ethereum, and Solana purchases. Despite Strategy reporting $2.8 billion in profits for its third quarter, analysts have pointed to a declining multiple to Net Asset Value (mNAV), indicating a reduction in the premium at which its shares trade relative to its crypto holdings.

Key Takeaways

Sequans’ decision to sell a portion of its Bitcoin treasury highlights a strategic use of digital assets to manage corporate debt and strengthen financial foundations. While the company reaffirms its long-term commitment to Bitcoin, the stock market’s immediate negative reaction and the broader context of corporate crypto holdings underscore both the potential benefits and the inherent risks associated with such strategies.