Sequans Communications, a France-based fabless semiconductor company known for integrating Bitcoin (BTC) into its corporate balance sheet, has become the first digital asset treasury (DAT) firm to sell part of its Bitcoin holdings. The move, aimed at reducing convertible debt, has sent ripples through both the corporate and crypto communities, sparking debate about the sustainability of Bitcoin-centric treasury strategies in volatile market conditions.
The company disclosed the sale of 970 Bitcoins in its preliminary financial results for Q3 2025, released on 4 November. This represents roughly 30% of its total Bitcoin holdings and marks a pivotal shift for the firm, which began accumulating BTC in July 2025 as part of its balance-sheet diversification strategy.
Debt Reduction Over Digital Reserves
According to the report, proceeds from the sale were used to repay half of Sequans’ $189 million convertible debt, issued earlier this year. Despite the divestment, the firm still holds 2,264 BTC, valued at approximately $230 million at current market prices.
CEO Dr. Georges Karam defended the decision, characterising it as a “disciplined and proactive approach” to balance sheet management.
“Sequans has taken a proactive and disciplined approach to managing its balance sheet and reducing half of its debt by opportunistically leveraging a portion of its Bitcoin holdings,” Karam stated. “This initiative has enhanced our financial flexibility, meaningfully reduced our debt-to-NAV ratio and boosted our ability to execute our buyback programme, while still preserving long-term Bitcoin treasury optionality.”
The firm’s pivot underscores the delicate balancing act facing companies that have integrated digital assets into their treasury frameworks. Sequans’ decision highlights how financial stress and operational downturns can pressure even Bitcoin-committed firms to liquidate holdings, a scenario rarely seen since the corporate Bitcoin adoption wave began in 2020.
Financial Headwinds Trigger Strategic Adjustment
Sequans’ sale came against the backdrop of a challenging financial quarter. The company reported an operating loss of $20.4 million and a net loss of $6.7 million in Q3 2025. Revenue declined sharply to $4.3 million, down 47.3% from the previous quarter and 57.5% year-on-year.
Adding to the strain, Sequans also recognised an $8.2 million unrealised loss due to the impairment of its Bitcoin holdings, which were marked to market. The decision to liquidate a portion of BTC assets appears, therefore, not merely opportunistic but necessary to maintain operational liquidity and reduce leverage.
The sale makes Sequans the first Bitcoin treasury firm to realise losses on its BTC position in the open market, marking an important precedent for corporate digital asset managers navigating market drawdowns.
Industry Reaction: Sustainability in Question
The event has reignited debate over whether corporate Bitcoin treasuries can withstand prolonged periods of price weakness. Analysts warn that more firms could follow if macroeconomic conditions remain tight and the U.S. dollar continues to strengthen.
Crypto analyst Nic Carter noted that companies might opt to sell BTC for fiat liquidity, particularly when facing rising operational costs or weakening crypto valuations. “Digital asset treasuries could sell BTC for USD as the dollar strengthens and Bitcoin weakens,” Carter said.
While Sequans’ sale is currently an isolated case, market observers caution that a broader wave of corporate Bitcoin liquidations could exacerbate downward price pressure. Distressed selling by treasury firms would flood the market with supply, potentially deepening declines and eroding investor confidence further.
One market watcher summarised the sentiment succinctly:
“We’ve entered into ‘fear’. Once the DATs blow up, we get ‘capitulation.’”
Implications for Corporate Bitcoin Adoption
The incident raises significant implications for firms considering or maintaining Bitcoin-based treasuries. The concept, once heralded as a hedge against inflation and fiat debasement, now faces a test of resilience in a deflationary or tightening environment.
While Sequans remains committed to its long-term Bitcoin strategy, its partial liquidation underscores the practical realities of managing digital assets within traditional corporate finance structures. Analysts argue that only firms with robust cash flow and low leverage can afford to hold through extended bear markets.
Larger players, such as Strategy (a clear nod to MicroStrategy), are viewed as unlikely to sell unless Bitcoin undergoes a severe and sustained downturn. “It would take one hell of a sustained bear market to see any liquidation for Strategy,” remarked The Bitcoin Therapist, a well-followed market commentator.
Conclusion: A Turning Point for Bitcoin Treasuries
Sequans’ decision to sell part of its Bitcoin holdings may represent a watershed moment for corporate crypto finance. It highlights both the promise and perils of holding volatile digital assets in a corporate treasury during uncertain macroeconomic conditions.
As Sequans moves forward with a lighter balance sheet but reduced BTC exposure, the broader market is left questioning whether this is an isolated event or the first signal of a new phase of corporate Bitcoin re-evaluation.
For now, the firm insists its long-term faith in Bitcoin remains intact, but the market will be watching closely, not just to see if others follow, but whether Bitcoin’s corporate era can withstand its first true stress test.
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