Shares of semiconductor firm Sequans Communications plunged over 16% on Tuesday following the company’s decision to liquidate a significant portion of its Bitcoin holdings. The sale of 970 BTC—approximately 30% of its total crypto reserves—was executed to retire half of its outstanding convertible debt, amounting to $94.5 million out of a total liability of $189 million.
Despite the abrupt market reaction, the company framed the move as a strategic financial maneuver rather than a shift in its long-term Bitcoin ambitions. CEO Georges Karam emphasized that Sequans’ core belief in Bitcoin as a reserve asset remains intact. “This transaction was a tactical step to unlock shareholder value in the current market environment,” he explained, underscoring that the decision was more about balance sheet optimization than a reevaluation of its crypto strategy.
The sale significantly reduced Sequans’ Bitcoin holdings, bringing its total down from 3,234 BTC to 2,264 BTC. This cutback marks a step back from the company’s previously announced goal of accumulating 100,000 BTC over the next five years. As a result of the sale, Sequans has slipped to 33rd place among corporate Bitcoin holders, dropping four spots from its earlier position.
The market response was swift and negative. Sequans’ stock (SQNS) fell to $5.92, down 16.6% on the day. The current price reflects a steep 89% decline from its 2025 high of $53.90, which was reached shortly after the company revealed its Bitcoin-centric treasury strategy in late June.
The company’s leadership maintains that the decision to sell was essential for strengthening its financial footing. Karam noted that reducing debt has removed certain restrictive covenants, allowing Sequans to pursue broader strategic initiatives and maintain Bitcoin as a long-term reserve. “This move enhances our ability to prudently manage and grow our treasury,” he said.
Sequans’ decision comes amid a broader trend of public companies incorporating digital assets into their treasuries. Over 200 publicly traded firms now hold Bitcoin on their balance sheets, a surge largely driven by the approval of spot Bitcoin ETFs in the U.S. last year. However, the enthusiasm surrounding this trend has started to wane. While initial announcements of Bitcoin treasury strategies often led to stock surges, many companies have since experienced significant losses as the novelty wore off and market conditions shifted.
Analysts have become increasingly skeptical about the sustainability of crypto-focused treasury strategies, particularly for companies without robust underlying businesses or financial health. Sequans’ recent sale was flagged by crypto analysts after a 2,264 BTC transfer was identified on October 29, adding to concerns that the company may not be able to sustain its long-term Bitcoin accumulation plan.
Critics argue that while Bitcoin can be a powerful strategic asset, it is not a silver bullet for struggling companies. Without a strong operational base, reliance on crypto holdings can introduce volatility and investor skepticism. In Sequans’ case, the selloff highlighted the market’s fragile confidence in such strategies, particularly when they are reversed or adjusted quickly.
Looking ahead, Sequans faces the challenge of rebuilding investor trust while staying committed to its crypto ambitions. Whether the company can balance its Bitcoin strategy with sound financial management will likely determine its trajectory in the coming years.
The incident also raises broader questions about the role of digital assets in corporate finance. While Bitcoin has steadily gained institutional acceptance, its integration into company treasuries remains controversial. For financially stable firms, it may offer diversification and long-term upside. But for others, especially those using it as a lifeline, the risks may outweigh the rewards.
Additionally, Sequans’ situation underscores the importance of timing and communication in executing major financial decisions involving crypto. Sudden moves, especially those perceived as contradictory to previous commitments, can erode investor confidence. Transparent rationale and consistent execution are essential if companies hope to avoid market backlash.
Despite the setback, Sequans remains among the top corporate Bitcoin holders globally. Its reduced holding of 2,264 BTC still represents a substantial commitment, and if market conditions improve, the company may resume its accumulation strategy. However, having already sold nearly a third of its crypto assets, the road to 100,000 BTC appears more uncertain than ever.
In the context of the broader semiconductor market, Sequans’ crypto strategy is unusual. Most chip manufacturers focus on traditional capital deployment—R&D, acquisitions, and shareholder returns—rather than speculative asset accumulation. Sequans’ approach has differentiated it, but also exposed it to heightened volatility.
Ultimately, the company’s experiment with Bitcoin as a treasury asset will serve as a case study for other firms contemplating similar strategies. It reveals both the potential benefits—liquidity and debt reduction—and the pitfalls, such as sharp stock declines and investor unease, that come with relying on volatile digital assets.