Bitcoin treasury concept stocks faced a heavy fall in July, with companies like Sequans experiencing a big dump in stock prices, triggering a crisis of investor confidence.

Despite Bitcoin reaching an all-time high in mid-July, the stock prices of several "Bitcoin treasury" companies, including Sequans, Nakamoto, and 21 Capital, have seen a significant fall. The stock price of companies represented by Sequans plummeted by 75%, raising market concerns about these companies' excessive reliance on BTC prices and cooling overall investment enthusiasm. This round of adjustment may indicate that the bull run dividends for such companies have reached an inflection point.

Sequans bets heavily on Bitcoin but faces a stock price crash

Sequans Communications is a semiconductor manufacturer based in France. After its stock price fell from $7 to $1 in 2024, it transformed into a Bitcoin treasury business in June 2025 and began a Bitcoin accumulation plan in partnership with Swan. In the eyes of Swan's Chief Investment Officer, Ben Werkman, this transformation was inspired by changes in the regulatory environment.

Sequans raised up to $384 million in June, surpassing the $250 million used by MicroStrategy for its initial Bitcoin purchase in 2020 (even though the BTC price was lower at that time). Werkman emphasized, "The new batch of Bitcoin treasury companies has introduced the concept of 'yield' for Bitcoin per share, and investors are looking for new opportunities that could achieve 5-10 times returns after missing out on the Strategy."

Stock prices experience big dumps and surges, causing short-term market confidence to waver

Sequans stock (SQNS) surged quickly after completing its inquiry placement on July 8, rising from $1.43 to $5.39 by July 25. However, it then fell sharply within just a few days to $1.3 by the end of the month, a drop of over 75%. The timing of the decline coincided with Galaxy Digital's large-scale transfer of BTC to exchanges, resulting in a short-term decline in the overall crypto market.

Sequans' purchase period of BTC coincided with the peak of Bitcoin's price. On July 14, BTC reached an all-time high of $123,091. Sequans' average purchase price at that time was $119,000, which was relatively high entry. Although treasury firms typically do not emphasize "timing the market", this entry price seems less than ideal.

In addition, Sequans' second quarter financial report shows a net loss of $9.1 million, a year-on-year decrease of 15%, and gross margin dropping from 84% to 64%. Although product revenue increased by 59% year-on-year, revenue from licensing and services declined, leading to a mixed overall financial performance. Nevertheless, the company still expects to achieve breakeven by 2026 and will continue to focus on Bitcoin accumulation.

Multiple Bitcoin treasury stocks have fallen sharply, putting pressure on the industry as a whole

Apart from Sequans, several Bitcoin treasury-type companies experienced a sharp decline in stock prices in July:

• Nakamoto (NAKA) stock price fell from $13.5 to below $8
• 21 Capital's stock price fell from the high of $41 on July 14 to $25.5 on July 29.
• France Blockchain Group fell from $4.4 to $2.6
• The UK Smart Web Company fell from $6.1 to $2.51
• Coinsilium plummeted from $0.41 to $0.09, a drop of over 75%.

Even though some companies have seen a slight slowdown in their decline, overall, treasury enterprises are generally caught in a wave of capital sell-offs. Even though Bitcoin reached a new high in July, these companies failed to strengthen in tandem, reflecting that investor confidence in their model is wavering.

Will Bitcoin treasury companies face an NFT-style bubble fate?

The current fall indicates that the market's tolerance for Bitcoin treasury companies is decreasing. These companies rely too heavily on the rise of BTC prices and lack a sustainable core business model. If the BTC market experiences volatility or if the regulatory environment tightens in the future, this sub-sector may repeat the collective decline fate seen in the later stages of the NFT bubble.

Conclusion: The big dump in July reflects the vulnerability of Bitcoin treasury concept stocks. Although Bitcoin reached new highs, the performance of companies like Sequans indicates that simply "holding coins" is not enough to support long-term stock price increases. Investors should pay attention to whether these companies can build more sustainable profit models to avoid repeating the mistakes of the NFT sector.