Sequans Communications, a France-based fabless semiconductor company known for its role in 5G and IoT chip solutions, has made history by becoming the first Bitcoin (BTC) treasury firm to sell part of its digital asset reserves. The firm offloaded roughly 30% of its Bitcoin holdings to manage its debt obligations, marking a pivotal moment for corporate Bitcoin treasuries.

The move, announced in Sequans’ preliminary Q3 2025 financial report, revealed that the company sold 970 BTC from its treasury. The sale proceeds were used to pay down half of its $189 million convertible debt, which was issued in July 2025.
Following the transaction, Sequans’ remaining 2,264 BTC are valued at around $230 million, based on current market prices.

Balancing Bitcoin Strategy and Financial Stability

Sequans’ decision comes just months after it began accumulating Bitcoin in July 2025, joining the growing list of corporations adopting BTC as a reserve asset. The firm had made gradual Bitcoin purchases throughout the year, positioning itself as a pioneer among technology companies experimenting with digital asset treasuries (DATs).

However, mounting financial pressure has now forced Sequans to recalibrate its strategy. The firm reported an operating loss of $20.4 million and a net loss of $6.7 million for Q3 2025. Revenue declined sharply to $4.3 million, a 47.3% drop quarter-over-quarter and 57.5% lower year-on-year.

Despite these challenges, CEO Dr Georges Karam defended the decision as a strategic move to enhance liquidity and strengthen the balance sheet.

“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,” Karam said. “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 reiterated the company’s commitment to Bitcoin as a long-term value store, even as it navigates short-term volatility and operational setbacks.

Market Reaction and Broader Treasury Risks

Sequans’ sale has intensified scrutiny of corporate Bitcoin treasury strategies, especially during a period when BTC prices remain under pressure. Analysts warn that if more firms follow Sequans’ lead, the market could see increased selling pressure and reduced investor confidence.

Digital asset researcher Nic Carter noted that firms with substantial Bitcoin reserves may choose to de-risk into USD as the dollar strengthens and Bitcoin weakens.
While one sale does not signal a trend, it highlights the fragility of corporate Bitcoin strategies under financial stress.

The concept of the Digital Asset Treasury (DAT), where companies hold Bitcoin as part of their corporate reserves, has gained traction since MicroStrategy’s high-profile BTC accumulation. However, Sequans’ partial liquidation underscores the risks of maintaining Bitcoin-heavy balance sheets during bear markets or liquidity crunches.

One analyst summarised the sentiment succinctly:

“We’ve entered into fear. Once the DATs blow up, we get capitulation.”

If more treasuries are forced to sell, analysts warn of cascading effects that could deepen market declines and push sentiment further into capitulation territory.

Could Larger Bitcoin Treasuries Follow Suit?

The spotlight now turns to larger corporate holders, such as Strategy (a thinly veiled reference to MicroStrategy), which collectively hold tens of thousands of Bitcoins.
So far, analysts see no immediate risk of liquidation from these players, given their stronger cash positions and long-term conviction in Bitcoin.

“The only scenario where we’d see Strategy liquidating BTC would be under a severely prolonged bear market with extreme underperformance,” said The Bitcoin Therapist, a prominent market commentator. “Bitcoin would have to perform horribly for that to happen.”

Nevertheless, Sequans’ move may serve as a wake-up call to other companies with exposure to Bitcoin. The event underscores the tension between conviction and solvency, where even a committed Bitcoin treasury may be forced to act against its principles to ensure operational stability.

A Defining Moment for Corporate Bitcoin Strategy

While Sequans’ sale represents only a small dent in the overall corporate Bitcoin landscape, it could set a precedent for how digital asset treasuries behave during downturns. The episode highlights that even in a maturing Bitcoin ecosystem, financial discipline must coexist with crypto conviction.

For now, Sequans remains firm in its stance that Bitcoin will continue to play a role in its treasury strategy. However, the company’s experience serves as a cautionary tale, showing that Bitcoin’s promise of long-term value must still contend with short-term financial realities.

As markets digest this first-ever Bitcoin treasury sell-off, investors and analysts alike will be watching closely to see whether Sequans’ decision becomes an isolated adjustment or the beginning of a broader trend among corporate Bitcoin holders.