Bitcoin News Today: Bitcoin Treasury Stocks Plunge 75% Amid Sector-Wide Investor Doubts

In July 2025, several Bitcoin treasury companies, including Sequans Communications, experienced significant stock price declines, raising concerns about the sustainability of the sector. Sequans, a French-based semiconductor firm, raised $384 million in June to launch its Bitcoin treasury initiative, outpacing MicroStrategy’s earlier Bitcoin investment in 2020 [1]. However, its stock, SQNS, initially spiked following the fundraising but plummeted by 75% by the end of the month, reflecting broader instability within the Bitcoin treasury sector [2].

Sequans’ pivot into Bitcoin was driven by the evolving regulatory environment and a desire to redefine institutional risk, as noted by Swan CIO Ben Werkman in a July 9 interview with CNBC [3]. The company’s strategy centered on Bitcoin yield—a metric reflecting the rate of Bitcoin accumulation per share—which Werkman argued could offer investors hypergrowth opportunities [4]. Despite the initial optimism, the company reported a net loss of $9.1 million in Q2 2025, with a 15% decline compared to the same period in 2024. Its gross margin also dropped from 84% to 64% over the year [5].

Sequans’ Bitcoin accumulation efforts coincided with BTC reaching an all-time high of $123,091 on July 14, although its average purchase price was below $119,000. This high entry point may raise concerns for investors, especially as the company aims for breakeven in 2026 [6]. The July stock sell-off was not isolated; several other Bitcoin treasury companies also saw sharp declines. For instance, Naka, led by David Bailey, saw its stock drop from $13.5 to below $8 during the month. 21 Capital’s stock fell from $41 to $25.5 in just a few weeks [7].

Notably, the market sell-off seemed to align with movements in the crypto space. On the day Sequans’ stock began to fall, Galaxy Digital moved tens of thousands of BTC to exchanges, contributing to a short-term crypto price dip [8]. These events highlight the sector’s strong dependence on Bitcoin’s price dynamics and investor sentiment, with treasury companies suffering even as BTC hit record highs.

While some companies reported mixed financial results—such as Sequans seeing a 59% increase in product revenue but a decline in license and services revenue—the broader trend in July points to a loss of investor confidence. If these patterns continue, the Bitcoin treasury sector could face a future similar to the NFT market, with potential long-term implications for its viability [9].

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[1] [Sequans and other Bitcoin treasury companies saw their stocks plummet this July. What does this signal mean?](https://coinmarketcap.com/community/articles/688bc0a87ecd143f156aa530/)