Bitcoin News Today: Sequans' 'Strategic' Bitcoin Sale Does Not Ease Investor Doubts, Stock Drops 16%

Shares of Sequans Communications SA (SQNS) plunged by 16% on Tuesday after the semiconductor company sold 970

to pay off half of its $189 million in convertible bonds, reducing its Bitcoin assets from 3,234 to 2,264 coins. CEO Georges Karam referred to the move as a "strategic asset reallocation," which lowered the company’s debt to $94.5 million while keeping its long-term Bitcoin reserve plan intact, according to . Despite Karam’s reassurances, the stock price fell to $5.92, representing an 89% drop from its 2025 peak.

This sale, which brought in about $97 million, is part of Sequans’ broader initiative to improve its financial stability. The company also revealed a plan to cut costs by 20% and is targeting break-even by the fourth quarter of 2026, as noted by

. Karam stressed that holding Bitcoin remains central to the company’s strategy, describing the sale as a "tactical" decision rather than a change in belief, according to . Still, some analysts raised concerns about the viability of Bitcoin treasury strategies for financially weaker companies, pointing out that many crypto-centric firms have seen their share prices fall after initial enthusiasm faded, as reported.

Sequans’ financial results for the third quarter of 2025 highlighted ongoing difficulties. Revenue dropped 47.3% from the previous quarter to $4.3 million, mainly due to the end of Qualcomm licensing income and production setbacks, according to Investing.com. Gross margin decreased to 40.9% from 64.4% in the second quarter, reflecting a smaller share of high-margin licensing revenue, again per Investing.com. The company posted an operating loss of $20.4 million, which included an $8.2 million unrealized loss from Bitcoin impairment, as reported by

. Cash on hand fell to $13.4 million as of September 30, 2025, not counting a $10 million payment from a previous Qualcomm agreement, the Stocktitan report noted.

The Bitcoin sale reflects a broader trend of institutional involvement, with more than 200 publicly traded companies now holding the cryptocurrency. Sequans’ decision follows MicroStrategy’s aggressive purchase of 641,205 BTC and other firms diversifying their reserves, as Decrypt reported. Nevertheless, the deal attracted attention from regulators and analysts. The SEC recently suspended trading of QMMM Holdings to look into possible stock manipulation related to crypto acquisitions, Decrypt reported, while experts cautioned about the volatility of crypto treasuries, according to Markets.com.

Karam pointed to growth prospects in Sequans’ IoT segment, mentioning a $550 million three-year sales pipeline and a new intellectual property initiative expected to deliver high-margin revenue in 2026, as highlighted by Investing.com. The company is also pursuing licensing agreements for its 5G RedCap technology, with potential upfront payments between $3 and $5 million, according to Investing.com. Despite these initiatives, Sequans’ share price has underperformed, reflecting doubts among investors about its ability to manage both Bitcoin exposure and business expansion, the Cointelegraph report added.

This sale has made

the 33rd largest corporate Bitcoin holder, down from 29th place in July, according to . Although the company still aims to accumulate 100,000 BTC over five years, the recent sale underscores the financial challenges faced by firms balancing crypto investments with traditional operations, the Coinotag report stated. As the market reacts to this move, Sequans’ ability to stabilize IoT revenue and handle regulatory challenges will be key to regaining investor trust, Markets.com observed.