French semiconductor firm Sequans Communications has liquidated a significant portion of its Bitcoin treasury to reduce debt, becoming the first of its kind to reverse the strategy of accumulating the cryptocurrency as a reserve asset.
The company sold 970 Bitcoin (BTC) when the digital asset was trading below $102,000 per coin. This strategic asset reallocation allowed Sequans to redeem 50% of its convertible debt.
The move significantly improved the company’s debt-to-asset ratio, reducing it from 55% to 39%. Despite the sale, Sequans still retains 2,264 BTC on its balance sheet.
Georges Karam, CEO of Sequans, stated that the sale was a tactical decision to enhance shareholder value and strengthen the company’s financial foundation. He emphasized that their conviction in Bitcoin as a long-term reserve asset remains unchanged.
Karam added that removing certain debt restrictions will allow the company to pursue new strategic initiatives with Bitcoin remaining a core part of its treasury strategy. Sequans initially began its Bitcoin accumulation in July 2025 with 370 BTC, eventually holding a peak of 3,324 BTC before the recent sale.
The action by Sequans sets a precedent among “playbook” companies, a group that adopted a strategy of combining debt and stock issuance with the accumulation of Bitcoin as a reserve asset. A weakening market environment is now testing the financial resilience of these firms.
Another example of this trend is EthZilla, which recently sold part of its Ethereum holdings to fund share repurchases. Such moves suggest companies may prioritize liquidity over crypto accumulation amidst adverse market conditions.
Sequans Communications’ stock has been trading near historic lows. After briefly reaching an annual high of $53 in July 2025, shares plummeted to $6.22 in November, marking a nearly 20% decline over the past year.
Analysts have previously suggested that “Digital Asset Treasury” (DAT) companies, which collectively absorbed $17 billion from Wall Street, were often overvalued, trading above the actual worth of their Bitcoin reserves.
The prolonged decline in Bitcoin prices has limited these companies’ ability to access new liquidity and attract buyers. A slowdown in corporate Bitcoin purchases has also ceased to be a significant driver for the broader cryptocurrency market.
In its third-quarter report, Sequans reported a substantial drop in revenue, falling to $4.3 million from $8.1 million in the previous quarter. The company also posted a loss of $6.7 million, a sharp reversal from a net gain of $72.6 million in the same period of 2024.