Sequans dumps 970 BTC to reduce debt: Bitcoin holdings strategy faces testing — Is this a warning sign for the crypto market?

Paris Semiconductor Company Sequans becomes the first publicly traded company to sell Bitcoin reserves during the cryptocurrency market cooling-off period, reducing debt by 50% through the sale of 970 BTC. This article provides an in-depth analysis of the market challenges faced by corporate Bitcoin holdings strategies and what this means for cryptocurrency investors.

Strategic Reduction Sequans Sells One-Third of Its Bitcoin Reserves

On Tuesday, Paris Semiconductor Company Sequans Communications announced it had sold 970 BTC (approximately one-third of its total holdings), completing a $94.5 million debt redemption. This transaction lowered the company’s debt from $189 million to $94.5 million, and Bitcoin holdings decreased from 3,234 BTC to 2,264 BTC. Management described this as a “strategic asset reallocation” aimed at optimizing the balance sheet structure.

Debt Ratio Significantly Improves, Company Emphasizes Unchanged Bitcoin Belief

Sequans CEO Georges Karam emphasized that this reduction is a tactical adjustment rather than a policy shift: “Our Bitcoin treasury strategy and deep belief in Bitcoin remain unchanged. This is a tactical decision to unlock shareholder value given the current market environment.” Through this move, the company’s debt-to-asset net value ratio improved from 55% to 39%, creating more room for its ADS buyback plan, preferred stock issuance, and profit strategy on remaining Bitcoin holdings.

Market Environment Worsens, Corporate Bitcoin Strategy Faces Pressure

Sequans’ reduction reflects the financial pressure faced by corporate Bitcoin holdings amid declining markets. As Bitcoin prices fell below $103,000 (a four-month low), listed companies using leverage are under significant stress. Data shows that in early November, institutional Bitcoin accumulation fell below daily mining output for the first time in seven months, and companies are finding it increasingly difficult to finance Bitcoin acquisitions through new stock or convertible debt issuance.

From Aggressive to Cautious: An In-Depth Look at Sequans’ Strategic Shift

Sequans entered the Bitcoin treasury market in June 2025 with high-profile leverage accumulation, mimicking Strategy’s approach, raising $385 million through debt and equity financing suggested by Swan Bitcoin. The company had set a long-term goal of holding 100,000 BTC by 2030, but market changes prompted a shift toward caution. After this reduction, Sequans’ ranking among listed companies by Bitcoin holdings dropped from 29th to 33rd, with the remaining 1,294 BTC continuing to serve as collateral for outstanding debt.

Industry Landscape Evolves, Corporate Holdings Strategies Show Clear Differentiation

According to Bitcoin Treasuries data, global corporate and institutional holdings currently total 4.05 million BTC (about one-fifth of the total supply), up 4% over the past 30 days. Public companies hold nearly 60% of this, led by the US-based Strategy, Marathon, and Coinbase. As market conditions change, companies like Japan’s Metaplanet and MicroStrategy have adjusted financing methods or repurchased stock to stabilize performance, demonstrating the profound impact of cryptocurrency market fluctuations on corporate financial strategies.

(Source: Bitcoin Treasuries)

Conclusion

Sequans’ reduction marks a new phase in corporate Bitcoin strategy—from aggressive accumulation to risk management. While the company emphasizes its long-term confidence in Bitcoin remains unchanged, this move serves as a reminder for cryptocurrency investors to pay attention to liquidity risks in corporate holdings. During periods of increased market volatility, controlling leverage and maintaining financial flexibility are more important than expanding holdings. For the entire industry, this may be an essential test as corporate Bitcoin strategies mature from adolescence to adulthood.