Sequans Communications, a fabless semiconductor company that adopted Bitcoin (BTC) as a reserve asset, has sold 30% of its holdings to reduce convertible debt.
This marks the first instance of a BTC digital asset treasury (DAT) firm selling its holdings. The move has sparked greater scrutiny of digial asset treasury strategies.
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Sequans Communications Sells Bitcoin Holdings to Cut Debt
Sequans Communications began accumulating Bitcoin in July 2025. The firm continued to make modest purchases over the past few months. On November 4, Sequans released its preliminary financial results for the third quarter of 2025.
In it, the company revealed that it has sold 970 Bitcoins. The sale was made to pay down half of its $189 million convertible debt, issued in July 2025.
Sequans’ Bitcoin reserves now stand at 2,264 BTC, valued at approximately $230 million at current market prices. Despite the setback, CEO Dr. Georges Karam stated Sequans remains committed to its Bitcoin treasury strategy, viewing it as a vehicle for long-term value.
“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. This initiative has enhanced our financial flexibility, meaningfully reduced our debt-to-NAV ratio, and boosted our ability to execute our buyback program, while still preserving long-term Bitcoin treasury optionality,” Karam stated.
The move came amid broader financial pressure for the firm. In Q3, Sequans reported an operating loss of $20.4 million and a net loss of $6.7 million. Revenue fell to $4.3 million, down 47.3% from the previous quarter and 57.5% year-over-year.
“The operating loss in the third quarter of 2025 included an $8.2 million unrealized loss on impairment of the value of our Bitcoin investment, which was marked to market,” the firm added.
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Risks and Market Implications of Corporate Bitcoin Treasuries
For now, Sequans is the only BTC treasury firm to sell part of its Bitcoin holdings. Still, the current market environment, where BTC prices remain under pressure, raises questions about the sustainability of Bitcoin-centric treasury strategies during periods of operational and market stress.
Analyst Nic Carter suggested digital asset treasuries could sell BTC for USD as the dollar strengthens and Bitcoin weakens.
a DAT that borrows Bitcoin, sells it, and buys rapidly appreciating dollars
— nic carter (@nic__carter) November 4, 2025
A broader wave of selling, however, could have severe consequences. Distressed liquidations by treasury firms would inject a large supply of Bitcoin into the market, intensifying selling pressure and further eroding confidence.
Analysts also warn that such corporate liquidations could exacerbate market downturns and trigger a shift in sentiment toward capitulation.
“We’ve entered into ‘fear’. Once the DATs blow up, we get ‘capitulation,’” a market watcher added.
While the market may withstand limited offloading from smaller Bitcoin treasury firms, a prolonged downturn could test larger players as well. This raises the question: could major holders like Strategy follow suit? For now, analysts view that scenario as unlikely.
“Would be one hell of a sustained bear market to see any liquidation for Strategy. Bitcoin would have to perform horribly,” The Bitcoin Therapist said.
MSTR liquidation in the next bear market? I doubt it,
Here’s their debt, the date the debt is due and the price MSTR stock needs to exceed to prevent partial liquidation of their BTC treasury to pay the debt. Equivalent BTC price assumes mNAV 1.0 pic.twitter.com/AzVgecI7i2
— Willy Woo (@woonomic) November 4, 2025
BeInCrypto previously reported that while Strategy’s structure allows it to weather market declines, its imitators may not be as resilient. Experts told BeInCrypto in late October that the next bear market will likely weed out weaker participants, leaving only well-capitalized firms standing.
