Sequans Sells $100 Million in BTC: Tactical Move or End of the Digital Treasury Dream?
Just four months after pivoting to a digital asset treasury strategy, French semiconductor firm Sequans (SQNS) sold 970 Bitcoin—worth roughly $100 million—to pay down half of its outstanding debt. This move slashed its debt from $189 million to $94.5 million.
Despite the sell-off, which caused Sequans stock to drop 16.6%, CEO Georges Karam insisted the company’s "deep conviction in Bitcoin remain unchanged." He framed the sale as a "tactical decision aimed at unlocking shareholder value" by strengthening the financial foundation and, critically, removing certain debt covenant constraints.
By freeing itself from these restrictions, Sequans aims to pursue a "wider set of strategic initiatives," maintaining its remaining 2,264 BTC ($228 million) as a "long-term strategic reserve asset."
Sequans is one of over 200 public companies that followed the model set by Strategy (formerly MicroStrategy). However, the market’s negative reaction to the sale highlights the inherent risk in this model. While Strategy has seen massive profits, experts warn that using crypto as a corporate treasury reserve may not be appropriate for every company, especially those facing immediate liquidity or debt management pressures.
