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Sequans Communications (SQNS) is the first Bitcoin treasury company to sell coins in order to balance its debt. The company sold 970 BTC at a time when market prices remained shaky.
Sequans Communications (SQNS) sold 970 BTC from its treasury to service debt. Sequans is starting a precedent among playbook companies in selling their treasuries to improve asset balance. Following the news of the sale, BTC traded under $102,000, extending its slide in line with bearish expectations.
The French firm is one of the 18 ‘playbook companies’, which copy the moves of Strategy to turn debt and stock issuance into BTC. Sequans announced its round of ‘strategic asset reallocation’, where it redeemed 50% of convertible debt.
Sequans Redeems 50% of Convertible Debt Through Strategic Asset Reallocation.
This move opportunistically leverages Bitcoin holdings to enhance financial flexibility, reduce Debt-to-NAV ratio, and boost buyback capacity while preserving long-term treasury optionality. $SQNS
Learn… pic.twitter.com/bTbVMQGC2T
— Sequans (@Sequans) November 4, 2025
After the sale, Sequans holds 2,264 BTC. The company started its treasury with just 370 BTC in July 2025, building up to 3,324 BTC at the peak.
Sequans adjusted its debt-to-asset ratio
Following the sale, Sequans improved the ratio of debt to net asset holdings from 55% to a more prudent 39%.
‘Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,’ said Georges Karam, CEO of Sequans.
‘This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions. It strengthens our financial foundation and removes certain debt covenant constraints, enabling us to pursue a wider set of strategic initiatives to prudently develop and grow our treasury, with Bitcoin as a long-term strategic reserve asset,’ he said.
Sequans is a later addition to playbook treasury companies, buying its coins during the peak period of hype. The selling arrived at a time when BTC was still sliding, pressured by profit-taking from whales and retail wallets.
Sequans sold BTC from its treasury to erase 50% of its debt, just as BTC was sliding to a lower range. | Source: Bitcoin TreasuriesSequans follows the recent move of EthZilla to sell a part of its ETH holdings for share buybacks. There is currently no standard for treasury companies to retain all their holdings, even when conditions worsen. The playbook approach works during bullish parts of the crypto cycle, but this time, the willingness of treasury companies to hold may be tested.
Sequans trades near an all-time low
SQNS shares had a short-lived rally in July 2025, reaching a yearly high above $53.
As of November, SQNS traded at $6.22, an all-time low. The stock is down nearly 20% in the past year. SQNS is part of the treasury hype, which ended up taking $17B in liquidity from Wall Street. The shares of DAT companies were considered overvalued in hindsight, as they traded above the value of BTC held in the treasuries.
A threatening bear market shows that DAT companies may not have access to the same liquidity and buyer pool if the BTC price is not climbing. Additionally, treasury purchases have slowed down and can no longer spark BTC growth.
Sequans also reported shrinking revenues in Q3, down to $4.3M from $8.1M in the previous quarter. The company market $6.7M in losses for Q3, significantly down from the $72.6M net gain in Q3, 2024.
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