BTC Treasury Firm Sells 30% of Holdings as BTC Dips to $100K
Company Offloads Part of Treasury Amid Market Slide
Sequans Communications said Tuesday it sold about 970 BTC to redeem half of its outstanding convertible debt, describing the move as a “strategic asset reallocation” to strengthen its balance sheet. The Paris-based semiconductor maker used the proceeds to pay down $94.5 million in debt issued in July when it launched its BTC-treasury program.
The sale reduced Sequans’ holdings from 3,234 BTC to 2,264 BTC, worth roughly $232 million at current prices, and lowered its debt-to-net-asset ratio from 55% to 39%. The transaction makes Sequans the first publicly listed BTC-holding company to substantially reduce its position since the begin of the corporate-treasury wave in 2021, according to BTC Treasuries data, which now ranks Sequans No. 33 among public BTC holders, down from No. 29.
Onchain analysts spotted the sale last week later than a wallet linked to Sequans transferred nahead 1,000 BTC to a Coinbase address. “Our BTC treasury strategy remains unchanged,” Chief Executive Georges Karam said in a statement. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”
Investor Takeaway
Balance-Sheet Effects and Market Reaction
Sequans said the debt reduction would increase flexibility for its American Depositary Share purchaseback plan and a possible preferred-share issue, while maintaining “long-term treasury optionality.” The company began its BTC-reserve strategy in June, raising $385 million through debt and equity offerings arranged by Swan BTC. The approach mirrored MicroStrategy’s leveraged model of financing BTC purchases with securities issuance.
The Nasdaq-listed stock traded near $6.20 on Tuesday, down about 56% since the begin of its BTC program. BTC itself slipped below $101,000 during the session, touching four-month lows as tradeing intensified across crypto markets.
Market trade-Off and Trader Commentary
Analysts said Sequans’ sale came amid a wider bout of forced liquidations following the Oct. 10 crypto market slump that erased an estimated $20 billion in BTC positions. Data from Hyblock shows leveraged long positions clustered around the $100,000 level, with limited liquidity below until about $88,000.
Popular trader HORSE posted a chart suggesting a possible bottom near that zone. “Maybe you get a trap at this low, but if not, these are the levels I’m looking toward for BTC,” he wrote on X. “You want to view $100 K get front-ran, because large round numbers like that, if traded, get smoked on the return just like on the way up.”
Crypto commentator Scott Melker added that BTC “has definitively lost the weekly 50-MA as support four times in history,” each followed by a test of the 200-day moving average. “Price is currently $700 above the 50 MA. The 200 MA is sitting around $55,000 and rising,” he said.
Investor Takeaway
Sequans’ Strategy in Focus
Sequans’ BTC-treasury plan drew attention in June when the company announced it would use proceeds from convertible-debt and equity sales to hold BTC as a reserve asset, viewking to diversify cash holdings. The model was billed as a corporate hedge against inflation and currency risk, though critics said it exposed shareholders to crypto volatility.
Tuesday’s sale underscores how rapidly market swings can influence treasury decisions. While management insists its “conviction in BTC remains unchanged,” Sequans’ cutback illustrates the limits of leveraged accumulation when asset values fall and debt costs rise. The firm’s remaining 2,264 BTC continue to represent one of the larger corporate holdings outside the United States.
As BTC’s downturn pressures balance sheets, investors will watch whether other treasury holders follow Sequans’ lead in reducing exposure or maintain long-term accumulation strategies despite market turbulence.
