The Bitcoin gamble of Sequans Communications takes an unexpected turn. The French company listed on Nasdaq has sold 970 BTC, nearly a third of its reserves, to pay off half of its convertible debt. A move presented as a ‘strategic asset restructuring,’ yet causing discomfort among purists.
Sequans Lightens Debt by Selling 970 Bitcoins
Sequans previously held 3,234 bitcoins, an impressive reserve for a company in the IoT semiconductor sector. After the sale, its BTC treasure drops to 2,264 units, valued around $228 million. Through this operation, the debt-to-net asset ratio drops from 55% to 39%. In essence, Sequans strengthens its balance sheet as markets weaken: bitcoin has slipped below $101,000, its lowest level in four months.
But this act is not insignificant. The company drops from 29th to 33rd in the Bitcoin Treasuries ranking, which lists publicly traded companies holding the most BTC. A first in the world of ‘bitcoin corporates,’ where selling is not the norm.
A Financial Maneuver Under Pressure
“Our conviction about Bitcoin remains intact,” CEO Georges Karam assured. Officially, Sequans still views bitcoin as a long-term strategic reserve. Unofficially, financial pressure seemed too strong to do nothing. The $94.5 million retrieved helped pay off part of the debt issued in July, just as Sequans launched its ambitious Bitcoin strategy, inspired by the Model Strategy (formerly MicroStrategy).
On-chain analysts had already spotted the move: nearly 1,000 BTC transferred to a Coinbase address, a sign of an imminent sale. The operation is now confirmed.
Between Conviction and Realism
For Sequans, the goal is clear: restore maneuverability. The company mentions ‘greater flexibility’ for its stock buyback program and the potential issuance of preferred shares. A way to keep the door open for new financial operations while maintaining a substantial ‘Bitcoin treasure’ for the future.
This hybrid approach, between risk management and faith in BTC, reflects a shift in sentiment in native crypto corporate finance: conviction is no longer enough, one must also know how to breathe when rates rise and the market falls.
A Lesson for ‘Bitcoin Treasuries’
Sequans becomes the first publicly traded company to sell a significant portion of its bitcoins. A precedent that could inspire other heavily indebted companies that have bet big on the digital reserve. The SQNS title was trading around $6.20 on Tuesday’s close, down 56% since the launch of the Bitcoin program.
And if other companies start liquidating their BTC, it’s a vicious cycle that Bitcoin could face…
