Sequans Becomes First Bitcoin Treasury Firm to Sell Holdings Amid Market Strain

Core Insights - Sequans Communications has sold 30% of its Bitcoin holdings, marking the first instance of a digital asset treasury firm doing so to reduce convertible debt [1][2] - The company sold 970 Bitcoins to pay down half of its $189 million convertible debt, which was issued in July 2025 [2] - Sequans' Bitcoin reserves now total 2,264 BTC, valued at approximately $230 million at current market prices [3] Financial Performance - In Q3 2025, Sequans reported an operating loss of $20.4 million and a net loss of $6.7 million, with revenue falling to $4.3 million, a decrease of 47.3% from the previous quarter and 57.5% year-over-year [5] - The operating loss included an $8.2 million unrealized loss on impairment of the value of its Bitcoin investment [5] Strategic Approach - CEO Dr. Georges Karam emphasized that the company remains committed to its Bitcoin treasury strategy, viewing it as a long-term value vehicle [3] - The proactive management of its balance sheet has enhanced financial flexibility, reduced the debt-to-NAV ratio, and supported the company's buyback program while preserving long-term Bitcoin treasury optionality [4] Market Context - Sequans is currently the only BTC treasury firm to sell part of its Bitcoin holdings, raising questions about the sustainability of Bitcoin-centric treasury strategies amid operational and market stress [6] - Analyst Nic Carter noted that digital asset treasuries might sell BTC for USD as the dollar strengthens and Bitcoin weakens [6]