Sequans (SQNS) Sells BTC to Reduce Debt

Sequans Communications sold 970 Bitcoin to reduce its convertible debt, bringing total liabilities down from $189 million to $94.5 million. This move marks Sequans as the first bitcoin treasury firm to liquidate part of its Bitcoin holdings in a challenging market. Following this sale, Sequans now holds 2,264 BTC, valued at approximately $240 million, lowering its debt-to-net asset value ratio from 55% to 39%. CEO Georges Karam highlighted the decision as tactical, allowing for less leverage and improved capital market options. Despite the recent liquidation, Sequans’ ADRs saw a further drop of 9% on the day and have fallen 82% year-to-date. The company shifted to a Bitcoin treasury strategy in mid-2025, similar to approaches taken by other firms, yet many of these companies face difficulties as their market valuations fall below their Bitcoin asset values, potentially forcing them to sell BTC to manage debts or return capital to shareholders.

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