Bitcoin Treasury Firm Bubble Comes Full Circle as Sequans Unloads BTC to Cut Debt

In what may be the start to putting in a bottom in the crypto sell-off or the harbinger of more brutality to come, or both, Paris-based Sequans (SQNS) became the first of this year's hastily-formed bitcoin treasury companies to unload some its BTC stack.

Alongside its third-quarter earnings report, Sequans Tuesday said it redeemed 50% of its July 2025 convertible debt by selling 970 BTC$103,482.08, cutting total debt from $189 million to $94.5 million.

Its bitcoin reserves now stand at 2,264 BTC, worth roughly $240 million, lowering the debt-to-net asset value (NAV) ratio from 55% to 39%.

CEO Georges Karam described the decision as tactical and market-driven, emphasizing that the company’s long-term bitcoin strategy remains intact. With less leverage and fewer debt covenants, Sequans plans to expand its capital market options, including its ADR buyback program, potential preferred share issuance, and yield-generating strategies using bitcoin.

Bubble aftermath

Sequans ADRs are lower by another 9% on Tuesday and 82% year-to-date. The microcap semiconductor company pivoted to a bitcoin treasury strategy in July, joining a rush of other firms attempting to mimic the success of Michael Saylor's Strategy.

The stock prices of nearly all have collapsed even as the price of bitcoin — though down sizably of late — remains just 20% below its record high.

Sequans finds itself part of a growing list of BTC treasury names seeing their market capitalizations trading well beneath the value of their bitcoin holdings. This not only makes it difficult to impossible to raise capital for further accumulation, but also might leave managements no choice but to sell BTC to either pay down debt or return money to shareholders.