Bitcoin News Today: From Bitcoin Pledge to Debt Cut: Sequans Transforms Treasury for Shareholder Value

Sequans Communications S.A. (NYSE: SQNS), a pioneer in adopting Bitcoin as its primary treasury reserve asset, has confirmed the sale of 970 Bitcoin to reduce its outstanding convertible debt by 50%. The transaction, announced on November 4, 2025, marks a strategic shift in the company's balance sheet management, according to a MarketScreener article. The move reduces total debt from $189 million to $94.5 million and lowers the debt-to-Bitcoin net asset value (NAV) ratio from 55% to 39%, positioning the firm for greater financial flexibility, the article added.

The company's Bitcoin holdings have decreased from 3,234 to 2,264 BTC following the sale, with the remaining 1,294 BTC still pledged as collateral for the remaining convertible debt, the article noted. This action aligns with Sequans' broader strategy to optimize its Bitcoin treasury while mitigating leverage risks. Georges Karam, CEO of Sequans, emphasized that the decision was "a tactical move aimed at unlocking shareholder value" and enabling "a wider set of strategic initiatives."

The debt reduction was accompanied by a $20.6 million non-cash gain on the embedded derivative related to the convertible debt in the company's preliminary Q3 2025 results. Despite the gain, Sequans reported a non-IFRS net loss of $11.0 million for the quarter, driven by non-cash expenses and accounting adjustments tied to the debt issuance. Cash and cash equivalents stood at $13.4 million as of September 30, 2025, excluding a $10 million final payment from a 2024 Qualcomm transaction released in October, the company reported.

The sale of 970 BTC also supports Sequans' previously announced ADS buyback program, which aims to enhance Bitcoin per share metrics and deliver long-term value to shareholders, the MarketScreener article said. The company's enhanced liquidity is expected to facilitate further capital markets initiatives, including potential preferred share issuance and yield generation from a portion of its Bitcoin holdings.

The transaction reflects a broader trend among firms leveraging digital assets to manage debt and optimize capital structures. Sequans' approach underscores the growing acceptance of Bitcoin as a strategic reserve asset, particularly in sectors where traditional treasuries face inflationary pressures.