Swan-promoted Sequans and several other Bitcoin treasury companies went through a rough period in July. After peaking on Jul. 14, 2025, Sequans’ stock price dropped by around 75%. Several treasury companies saw even harsher drops. What does this signal mean?
Summary
- Semiconductor manufacturer Sequans partnered with Swan and raised over $300 million to start Bitcoin accumulation.
- Despite a solid start, SQNS’ stock price dropped by 75% in July.
- July saw many Bitcoin treasury companies’ stock prices go down, on several occasions by over 50%.
Sequans’ Bitcoin Pivot
Sequans Communications is a Paris-based semiconductor manufacturer that went crypto a year after its stock’s price plummeted from around $7 to $1 in 2024. In June, Sequans teamed up with the Bitcoin company Swan and started to raise capital for launching the Bitcoin treasury company. The change in the regulatory environment explains the timing of the Bitcoin pivot, as Swan CIO Ben Werkman put it in the Jul. 9 interview with CNBC.
The company raised $384 million, outpacing MicroStrategy, which spent $250 million to buy its first Bitcoin capital in 2020 (however, it’s worth noting, Bitcoin was way cheaper back then).
Speaking of Sequans’ Bitcoin pivot, Werkman said that some might think that the market is becoming saturated, but the real opportunities for investors are still there. Here’s how he outlined the attractiveness of the fresh Bitcoin treasury companies:
“…one of the metrics that came out around these treasury companies is called Bitcoin yield… [It is] the rate at which a company is accumulating Bitcoin per share… [Investors are] seeing new companies emerging into the market where they see hyper growth in the Bitcoin per share in front of them. And they’re starting to rotate capital into some of those companies to try to find that five or 10x opportunity that a lot of them may feel that they missed the Strategy early on.”
SQNS price volatility
Following the completion of the enquiry offering on Jul. 8, the SQNS stock saw a short-lived spike, going from $1.43 to $5.39 by Jul. 25, and then plummeting to $1.3 by the end of the month. Such a downfall is in line with the other semiconductor companies’ stocks’ nosedive at the end of July. More than that, on the date when the SQNS price began to decline, Galaxy Digital moved dozens of thousands of BTC to several crypto exchanges, causing a short-term crypto market drop.
The period during which Sequans was buying bitcoins coincided with the BTC price spike. On Jul. 14, BTC even reached its all-time high at $123,091. However, according to Cory Klippsten of Swan, the average BTC price at which Sequans was buying BTC those days didn’t exceed $119,000. While corporate Bitcoin accumulators, including Strategy, usually don’t try to time the market, such an expensive entry may seem unfortunate for Sequans.
Recently, Sequans reported a net loss of $9.1 million in Q2 2025, which is a 15% drop from Q2 2024. The operating loss is down, too. Over the year, the gross margin of Sequans declined from 84% to 64%. Other metrics show mixed results with the product revenue growing by 59% while license and services revenue are down.
Nevertheless, the company is going to reach breakeven in 2026 and will continue its focus on Bitcoin accumulation. While it is not clear what the future holds for SNQS, the July performance of this stock signals that these days, investors approach Bitcoin treasury companies with caution.
Other treasury companies
Sequans wasn’t the only treasury company whose stock dropped this July. However, only a few of them lost over 50% of their stock value in July.
Nakamoto, headed by David Bailey, is another big name in the industry. Its equity NAKA was another treasury stock taking a hit in July, sliding from $13.5 to below $8 during the month. Jack Maller’s 21 Capital stock’s price went from $41 at the peak on Jul. 14 to $25.5 bottom on Jul. 29. French corporate Bitcoin treasury company Blockchain Group saw its stock’s price drop from $4.4 on Jul. 1 to $2.6 by Jul. 31.
Two UK Bitcoin treasury companies saw sharp declines. Smart Web Company’s stock went from $6.1 on Jul. 9 to $2.51 on Jul. 29. Coinsilium’s stock fell from $0.41on on Jul. 11 to $0.09 by Jul. 25, marking a fourfold drop, comparable to Sequans’ downfall.
While some treasury companies saw softer declines this July, the overall bleeding of such enterprises signals a lack of investors’ confidence in such businesses and too strong dependence on Bitcoin’s stability. Even though Bitcoin hit an all-time high, these companies saw severe sell-offs. If similar tendencies persist in the future months, the treasury companies’ trend might share the NFT market’s fate at best.
