Sequans Communications S.A. (NYSE: SQNS), recognized as an early adopter of
Bitcoin
as its main treasury reserve, has announced the sale of 970 Bitcoin, effectively slashing its outstanding convertible debt by half. Disclosed on November 4, 2025, this move signals a significant change in how the company manages its balance sheet, according to a
MarketScreener article
. With this transaction, the company’s total debt drops from $189 million to $94.5 million, and its debt-to-Bitcoin net asset value (NAV) ratio falls from 55% to 39%, providing Sequans with increased financial agility, the article noted.
After the sale, Sequans’ Bitcoin reserves declined from 3,234 to 2,264
BTC
, with 1,294 BTC still serving as collateral for the remaining convertible debt, according to the report. This step is part of Sequans’ broader plan to maximize the effectiveness of its Bitcoin treasury while reducing leverage-related risks. Georges Karam, CEO of
Sequans
, described the move as "a tactical step to unlock value for shareholders" and to "open up more strategic opportunities."
This reduction in debt also resulted in a $20.6 million non-cash gain from the embedded derivative tied to the convertible debt, as reflected in the company’s
preliminary Q3 2025 results
. Despite this gain, Sequans posted a non-IFRS net loss of $11.0 million for the quarter, mainly due to non-cash charges and accounting changes related to the debt. As of September 30, 2025, the company reported cash and cash equivalents of $13.4 million, not including a $10 million final payment from a 2024 Qualcomm deal received in October.
The sale of 970 BTC also supports Sequans’ previously disclosed ADS repurchase initiative, which is intended to boost Bitcoin per share metrics and provide lasting value for shareholders, according to MarketScreener. The company’s improved liquidity is expected to support additional capital market activities, such as issuing preferred shares and generating returns from part of its Bitcoin assets.
This transaction highlights a wider movement among companies using digital assets to manage liabilities and refine capital structures. Sequans’ strategy demonstrates the increasing role of Bitcoin as a reserve asset, especially in industries where conventional treasuries are challenged by inflation.
