In what could be the start of a cap on the crypto selloff or the harbinger of more brutality to come, or both, Paris-based Sequans (SQNS) became the first of this year’s hastily formed bitcoin tax companies to unload some of its BTC stack.
Alongside its third-quarter earnings report, Sequans said on Tuesday it redeemed 50% of its July 2025 convertible debt by selling 970 bitcoin reducing total debt from $189 million to $94.5 million.
Its bitcoin reserves now stand at 2,264 BTC, worth about $240 million, lowering its debt-to-net-assets ratio from 55% to 39%.
CEO Georges Karam described the decision as tactical and market-driven, stressing that the company’s long-term bitcoin strategy remains intact. With less leverage and fewer debt covenants, Sequans plans to expand its capital markets capabilities, including its ADR buyback program, potential preferred stock issuance and return-generating strategies using bitcoin.
Bubble aftermath
Sequan’s side effects are down another 9% on Tuesday and 82% year-to-date. The microcap semiconductor firm switched to a bitcoin treasury strategy in July, joining a rush of other firms trying to emulate the success of Michael Saylor’s strategy.
The share prices of almost all have collapsed, although the price of bitcoin – although it has fallen significantly recently – remains only 20% below the all-time high.
Sequans finds itself part of a growing list of BTC treasury names that are seeing their market caps trade far below the value of their bitcoin holdings. This not only makes it difficult to impossible to raise capital for further accumulation, but may also leave management with no choice but to sell BTC to either pay down debt or return money to shareholders.
