Sequans Communications, a manufacturer of semiconductors who have, in a most curious turn, embraced Bitcoin (BTC) as a reserve asset, hath sold 30% of its holdings to alleviate convertible debt.
This marks the inaugural instance of a BTC digital asset treasury (DAT) firm parting with its treasures. The move hath provoked whispers of trepidation regarding such strategies, as if the market itself were a fickle suitor.
Sequans Communications Sells Bitcoin Holdings to Cut Debt
In July 2025, Sequans Communications commenced amassing Bitcoin, much like a miser hoarding sovereigns. Over ensuing months, they made modest acquisitions, as though sampling a new wine. On November 4, they unveiled their preliminary financial results for the third quarter of 2025, a document as thrilling as a letter from a distant cousin.
Within it lay revelation: 970 Bitcoins were sold, a transaction to settle half of their $189 million convertible debt, issued in July 2025. A most prudent maneuver, one might suppose.
Sequans’ remaining Bitcoin reserves now total 2,264 BTC, valued at approximately $230 million. Despite this financial trimming, CEO Dr. Georges Karam declared steadfastness in their Bitcoin treasury strategy, as if declaring loyalty to a beloved but volatile paramour.
“Sequans hath adopted a proactive and disciplined approach to managing its balance sheet, reducing half of its debt by opportunistically leveraging a portion of its Bitcoin holdings. This hath enhanced our financial flexibility, reduced our debt-to-NAV ratio, and boosted our buyback program, while preserving long-term Bitcoin treasury optionality,” Karam stated, with the gravity of a man explaining why he sold his heirloom silverware.
This transaction transpired amid broader financial strain. In Q3, Sequans reported an operating loss of $20.4 million and a net loss of $6.7 million. Revenue plummeted to $4.3 million, a decline as steep as a maiden’s reputation after a scandalous ball.
“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, with the cheerfulness of a man announcing a death in the family.
Risks and Market Implications of Corporate Bitcoin Treasuries
For now, Sequans stands alone as the BTC treasury firm to divest. Yet, as BTC prices wane, questions arise about the sustainability of Bitcoin-centric treasuries during periods of operational stress. A most pressing conundrum, akin to wondering if a gilded coach can survive a monsoon.
Analyst Nic Carter mused that DATs might sell BTC for USD as the dollar strengthens, a notion as plausible as a pauper suddenly inheriting a dukedom.
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 send shockwaves through the market, akin to a fashion faux pas at a royal ball. Distressed liquidations by treasury firms would flood the market with Bitcoin, intensifying selling pressure and eroding confidence faster than a scandal spreads in a drawing room.
Analysts warn such corporate liquidations could exacerbate downturns and trigger a shift toward capitulation, a term as grim as it sounds.
“We’ve entered into ‘fear’. Once the DATs blow up, we get ‘capitulation,’” a market watcher added, with the enthusiasm of a man predicting his own demise.
While the market may endure limited offloading from smaller firms, a prolonged downturn could test even the stalwart. One wonders: could major holders like Strategy follow suit? For now, analysts deem it unlikely, though the market’s fickle heart may yet prove a formidable adversary.
“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, with the optimism of a man betting on a horse named “Disaster.”
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
– Willy Woo (@woonomic) November 4, 2025
BeInCrypto previously noted that while Strategy’s structure allows it to weather declines, imitators may not fare so well. Experts opine that the next bear market will likely cull weaker participants, leaving only the most resilient firms standing, like survivors of a shipwreck clutching the last lifeboat. 🏴☠️
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2025-11-05 13:21