Sequans’ stock price fell more than 16% after selling 30% of its Bitcoin to redeem half of its convertible debt. This is a move the semiconductor company described as “strategic asset reallocation.”
“Our Bitcoin financial strategy and deep belief in Bitcoin remain unchanged,” Seconds CEO Georges Karam said on Tuesday. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
The sale reduced the chip developer’s Bitcoin (BTC) holdings from 3,234 BTC to 2,264 BTC, a setback from its goal of accumulating 100,000 BTC over the next five years. The proceeds from the sale were used to reduce outstanding debt from $189 million to $94.5 million.
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“This strengthens our financial foundation, removes the constraints of certain debt covenants, and enables us to pursue broader strategic initiatives to prudently develop and expand our Treasury with Bitcoin as a long-term strategic reserve asset,” Karam added.
The move did not go down well with investors, with shares of Sequans (SQNS) declining 16.6% to $5.92 on Tuesday. It is currently down 89% from its 2025 high of $53.90, reached about a week after Sequans announced its Bitcoin plans in late June.
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More than 200 publicly traded companies currently have Bitcoin on their balance sheets, and the trend of institutional investors adopting Bitcoin has continued since the establishment of the Spot Bitcoin ETF in the US last year.
Many crypto treasury companies saw their stock prices rise upon the announcement of new strategies, but many are now plummeting after the initial hype has dissipated.
The deteriorating performance of many companies has led analysts to question the sustainability of Bitcoin’s financial strategy, especially for companies that are not yet in good financial shape.
Analysts spotted Sequance’s transfer last week
Sequans’ sale comes a week after crypto analysts flagged a transfer of 2,264 BTC on October 29, making it one of the most notable Bitcoin sales among publicly traded companies to date.
Sequans is currently the 33rd largest corporate Bitcoin holder, but has dropped four spots since purchasing Bitcoin in mid-July.
