Sequans Dumps 970 BTC to Slash Debt as Bitcoin Price Hits 4-Month Low – Is This a Red Flag?

Paris-based semiconductor firm Sequans Communications has sold nearly 970 Bitcoin, about a third of its total holdings, in a bid to cut debt and stabilize its balance sheet, becoming the first publicly traded Bitcoin treasury company to offload its reserves amid a cooling crypto ￰1￱ company announce d on Tuesday that the sale has funded the redemption of 50% of its outstanding convertible debt, thereby reducing liabilities from $189 million to $94.5 ￰2￱ Redeems 50% of Convertible Debt Through Strategic Asset ￰3￱ move opportunistically leverages Bitcoin holdings to enhance financial flexibility, reduce Debt-to-NAV ratio, and boost buyback capacity while preserving long-term treasury optionality. $SQNS Learn… ￰4￱ — Sequans (@Sequans) November 4, 2025 The transaction, valued at roughly $94.5 million, trims Sequans’ Bitcoin treasury from 3,234 BTC to 2,264 BTC, worth about $232 million at current ￰5￱ move lowers its debt-to-net-asset-value ratio from 55% to 39%, which management described as a “strategic asset reallocation.” Sequans Drops to 33rd-Largest Bitcoin Holder After The Recent Sale Chief Executive Officer Georges Karam framed the decision as tactical rather than a change in policy.

“Our Bitcoin treasury strategy and deep conviction in Bitcoin remain unchanged,” Karam said. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.” On-chain data first spotted the shift last week, when a wallet linked to Sequans transferred nearly 1,000 BTC to a Coinbase ￰6￱ $SQNS just dump 970 BTC? @coryklippsten @CitizenBitcoin @skwp ￰0￱ — Pledditor (@Pledditor) October 28, 2025 The company confirmed the transaction on Tuesday, saying it was part of a broader effort to strengthen financial flexibility and remove certain debt covenant constraints. Sequans’ stock traded around $6.20 following the announcement, down more than 56% since it began its Bitcoin-treasury strategy in July.) slipped below $103,000, its lowest level in more than four months, adding to the pressure facing leveraged corporate ￰7￱ said the debt reduction will give it more room to pursue its American Depositary Share (ADS) buyback program, issue preferred shares, and potentially generate yield on a portion of its remaining Bitcoin ￰8￱ firm’s remaining 1,294 BTC continue to serve as collateral for its outstanding ￰9￱ sale also drops Sequans’ position on the Bitcoin Treasuries ranking from No. 29 to No. 33 among public companies holding Bitcoin.) July 21, 2025 However, the timing of the recent sell-off reflects the growing financial strain facing Bitcoin treasury firms as the crypto market ￰10￱ prices have eroded stock premiums, making it harder for companies to issue new equity or convertible debt to fund ￰11￱ to market data, institutional Bitcoin accumulation fell below daily mining supply in early November for the first time in seven ￰12￱ note that firms using debt to accumulate Bitcoin are particularly exposed during ￰13￱ Bitcoin’s price drops, its stock valuations tend to fall even faster, amplifying leverage ￰14￱ companies, including Japan’s Metaplanet and MicroStrategy (now Strategy), have adapted by shifting funding methods or buying back shares to stabilize performance.