Shares of Sequans fell over 16% following the company’s announcement that it had sold 30% of its Bitcoin holdings to alleviate half of its $189 million convertible debt. The semiconductor manufacturer referred to this move as a “strategic asset reallocation.”

“Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,” said Sequans CEO Georges Karam on Tuesday. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.” “Nuestra estrategia de tesorería en Bitcoin y nuestra profunda convicción en Bitcoin permanecen sin cambios,” dijo el CEO de Sequans, Georges Karam, el martes. “Esta transacción fue una decisión táctica destinada a desbloquear el valor para los accionistas, dada las condiciones actuales del mercado.”

Following the divestment, Sequans’ Bitcoin inventory reduced from 3,234 BTC to 2,264 BTC, straying from their target to accumulate 100,000 BTC within the next five years. The sale’s proceeds helped to decrease outstanding debt from $189 million to $94.5 million.

“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,” Karam elaborated. “Fortalece nuestra base financiera y elimina ciertas restricciones de convenios de deuda, permitiéndonos seguir un conjunto más amplio de iniciativas estratégicas para desarrollar y hacer crecer prudentemente nuestra tesorería, con Bitcoin como un activo de reserva estratégica a largo plazo,” añadió Karam.

Investors reacted negatively, as Sequans shares dropped 16.6% to $5.92 on the day of the announcement—a stark contrast from its 2025 peak of $53.90 reached shortly after Sequans revealed its Bitcoin strategy in late June.

Sequans is now the 33rd largest corporate holder of Bitcoin, dropping four spots after its mid-July acquisition. This sale was flagged by crypto analysts as one of the biggest sales of Bitcoin among publicly traded companies to date.

Over 200 public companies currently hold Bitcoin, reflecting the ongoing trend of institutional adoption since the launch of spot Bitcoin ETFs in the US last year.