Bitcoin News Today: Sequans Communications Shares Plummet 24.49% Following 755-Bitcoin Purchase Total Holdings Now 3072 Coins

Sequans Communications S.A. (SQNS) experienced a dramatic 24.49% decline in its stock price on July 22, 2025, closing at $1.495 per share, following its announcement of acquiring 755 bitcoins at an average price of $117,296 per bitcoin (including fees). The transaction, disclosed on the same day, brought the company’s total bitcoin holdings to 3,072 coins, marking a significant expansion of its cryptocurrency portfolio. The stock’s plunge erased $70 million from its market capitalization, reducing it to $213 million by the end of the session [1].

The acquisition, described as a strategic move to hedge against fiat currency depreciation, drew immediate skepticism from investors and analysts. Pre-market trading on July 22 had already seen shares drop over 9%, with the company’s market capitalization hitting $283 million. Critics questioned the timing of the purchase amid Bitcoin’s recent price volatility and broader macroeconomic challenges, including high interest rates and regulatory uncertainties in the crypto space [2]. While the company did not explicitly link the stock’s decline to the Bitcoin purchase, market participants suggested the announcement may have accelerated profit-taking or triggered short-term trading activity [2].

Sequans has consistently allocated capital to cryptocurrency since 2022, using proceeds from a July 7 equity offering to fund the latest acquisition. The company’s decision to hold over 3,000 bitcoins has sparked debate about the operational flexibility of maintaining large volumes of illiquid digital assets. Proponents argue that blockchain technology offers long-term value preservation, while critics highlight risks such as liquidity constraints and underdeveloped regulatory frameworks [2]. The company’s mixed strategy of semiconductor innovation and crypto investment has further polarized investor sentiment.

The sharp decline in SQNS’s valuation mirrors broader caution toward firms with significant crypto exposure. Market observers noted parallels to past downturns, raising concerns about the company’s balance sheet resilience. With Bitcoin’s price trajectory remaining unpredictable, Sequans’ ability to stabilize its share price will depend on both its operational performance and the cryptocurrency’s market behavior [2]. The acquisition underscores the challenges firms face in balancing traditional tech markets with speculative investments, particularly in an environment marked by regulatory uncertainty and interest rate hikes [3].

Sources:

[1] [BlockBeats](https://www.theblockbeats.info/en/flash/304872)

[2] [AInvest](https://www.ainvest.com/news/bitcoin-news-today-sequans-communications-shares-drop-9-adding-755-bitcoin-market-cap-falls-283m-2507/)

[3] [Futunn](https://news.futunn.com/en/post/59705091/sequans-buys-more-bitcoin-now-holds-over-3000-coins-worth)