Bitcoin Updates Today: Bitcoin-Backed Borrowing: Companies Reduce Debts Yet Confront Unpredictable Price Swings

Hong Kong-headquartered chipmaker

(NYSE: SQNS) has made history as the first prominent treasury firm to offload part of its crypto assets to pay down debt, selling 970 BTC valued at $94.5 million. This move halved its liabilities from $189 million to $94.5 million, according to . The sale, revealed with its Q3 financial results, reduced the company's debt-to-net asset value (NAV) ratio from 55% to 39%. Sequans now retains 2,264 BTC, worth about $240 million, as reported by . CEO Georges Karam described the sale as a "strategic, market-responsive" action, reaffirming Sequans’ ongoing dedication to Bitcoin as a principal treasury holding, according to . The company intends to leverage its improved balance sheet to pursue capital market initiatives such as share repurchases and yield-focused investments, reported.

This transaction reflects a broader movement among listed companies to utilize Bitcoin reserves for liquidity and debt reduction. For instance, Hong Kong-listed Meitu Corporation recently boosted its Bitcoin stash to 35.6 BTC with a $5.24 million acquisition, indicating sustained corporate interest in digital assets as strategic reserves, according to Lookonchain. Analysts observe that companies holding Bitcoin are increasingly balancing immediate financial needs with long-term exposure to this volatile asset class.

At the same time, Hong Kong is actively establishing itself as a leading center for digital asset innovation, easing crypto rules to draw in global capital and participants, according to

. The Securities and Futures Commission (SFC) has recently permitted licensed asset platforms to tap into international liquidity pools and has loosened licensing standards for crypto custodians and stablecoin providers. These regulatory updates are designed to deepen market liquidity and help Hong Kong compete with Singapore and other Asian crypto hubs.

Sequans’ debt paydown comes amid heightened market volatility, with Bitcoin’s price falling 3.5% in the past day to $103,000, as per

. The drop, linked to fading expectations for U.S. rate cuts and global tensions, has led companies to adopt more prudent approaches. Despite the asset sale, Sequans’ share price has dropped 82% so far this year, mirroring broader investor caution toward Bitcoin-centric stocks.

This development also highlights the inherent risks of using Bitcoin as a treasury asset. Although Sequans’ remaining Bitcoin provides some protection against price swings, its $2.4 billion market cap now trades below its $240 million Bitcoin NAV, as noted by Coinotag. Similar trends are being seen at other companies, with some investors questioning whether valuing firms by their crypto holdings is sustainable.

As Hong Kong continues to adjust its regulatory landscape, the

example demonstrates the shifting relationship between corporate treasuries, debt strategies, and digital assets. The SFC’s plan to fully license crypto custodians and brokers by 2026 could further accelerate adoption, but market players must remain alert to the risks in this fast-changing sector.