Semiconductor firm Sequans saw its shares drop by more than 16% on Tuesday after the company sold 30% of its Bitcoin holdings to redeem half of its convertible debt.
The firm described the sale as a “strategic asset reallocation,” aiming to strengthen its balance sheet while reaffirming its long-term confidence in Bitcoin.
“Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,” said Sequans CEO Georges Karam. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
Debt Cut by Half, But Bitcoin Target Slips
The Paris-based chipmaker reduced its Bitcoin holdings from 3,234 BTC to 2,264 BTC, marking a step back from its ambitious plan to accumulate 100,000 BTC over the next five years.
Funds from the sale were used to lower Sequans’ outstanding debt from $189 million to $94.5 million.
Karam emphasized that the move would give the firm more flexibility moving forward. “It strengthens our financial foundation and removes certain debt covenant constraints, enabling us to pursue a wider set of strategic initiatives to prudently develop and grow our treasury, with Bitcoin as a long-term strategic reserve asset,” he added.
Investor Reaction and Market Performance
Despite management’s confidence, investors reacted negatively. Sequans’ stock (SQNS) fell 16.6% to $5.92 on Tuesday, marking a sharp decline from its 2025 peak of $53.90 — achieved shortly after announcing its Bitcoin strategy in late June.
The drop highlights growing skepticism toward corporate Bitcoin strategies, especially for companies that are not yet in strong financial standing.
Corporate Bitcoin Holdings Continue to Grow
More than 200 publicly traded firms now hold Bitcoin on their balance sheets, reflecting an ongoing wave of institutional adoption that accelerated after the launch of spot Bitcoin ETFs in the U.S. last year.
However, many companies that initially saw stock surges after announcing Bitcoin treasury plans have since faced sharp pullbacks as market enthusiasm cooled.
Sale Confirmed After On-Chain Activity Noticed
Sequans’ Bitcoin transfer was first spotted by crypto analysts on October 29, when a movement of 2,264 BTC was flagged on-chain.
The sale ranks among the most significant corporate Bitcoin liquidations in recent months.
Following the transaction, Sequans now stands as the 33rd largest corporate holder of Bitcoin, down four places from its previous ranking.