Shares in Sequans dropped by over 16% after selling 30% of its Bitcoin to redeem half of its convertible debt, a move the semiconductor company described as a “strategic asset reallocation.” “Our Bitcoin treasury strategy and our deep conviction in Bitcoin remain unchanged,” Sequans CEO Georges Karam said on Tuesday. “This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.” The sale cut the chip developer’s Bitcoin (BTC) stash from 3,234 BTC to 2,264 BTC, backsliding from its goal to accumulate 100,000 BTC over the next five years. Proceeds from the sale were used to cut its outstanding debt from $189 million to $94.5 million. Source: Sequans “It strengthens our financial foundation and removes certain debt covenant constraints, enabling us to pursue a wider set of strategic initiatives to prudently develop and grow our treasury, with Bitcoin as a long-term strategic reserve asset,” Karam added.The move was not well received by investors, with shares in Sequans (SQNS) falling 16.6% to $5.92 on Tuesday. It is now 89% off its 2025 high of $53.90, which was reached about a week after Sequans unveiled its Bitcoin plans in late June. Source: Sequans More than 200 publicly traded companies now hold Bitcoin on their balance sheets, continuing the trend of institutional Bitcoin adoption after spot Bitcoin exchange-traded funds launched in the US last year. Many crypto treasury companies have seen their stocks rally on announcing the new strategy, but many have now plunged after the initial hype faded. The declines in many firms have led analysts to cast doubt on the sustainability of Bitcoin treasury strategies, particularly those of firms that aren’t already in a strong financial position Analysts spotted Sequans’ transfer last week Sequans’ sale comes a week after crypto analysts flagged a 2,264 BTC transfer on Oct. 29, making it one of the most notable Bitcoin sales among publicly traded companies to date. Sequans is now the 33rd largest corporate Bitcoin holder, falling four places after making its Bitcoin purchase in mid-July.