- Sequans Communications ended its Bitcoin treasury strategy after selling BTC to redeem debt obligations.
- The company once held over 3,200 BTC but now plans to liquidate its remaining 658 BTC.
- Sequans reported heavy financial losses while its stock price collapsed following the failed treasury experiment.
Sequans Communications, the French semiconductor company that aggressively pivoted into Bitcoin treasury operations less than a year ago, is now backing away from the strategy almost entirely. After once promoting BTC as a “long-term reserve asset,” the company confirmed it has redeemed its convertible debt by selling Bitcoin and plans to gradually liquidate its remaining holdings as well.
The announcement marks a dramatic reversal for a company that previously aimed to hold more than 3,000 BTC on its balance sheet. At its peak, Sequans controlled around 3,234 BTC. Today, only 658 BTC remain, and even those are expected to be “monetized” over time according to the company’s latest statement.
The shift feels especially sharp considering how aggressively the Bitcoin treasury strategy was marketed just months earlier. Back in June 2025, Sequans positioned itself as one of the newer public companies embracing BTC accumulation as a path toward long-term shareholder value and financial resilience.
That optimism faded fast though. Sequans stock has collapsed roughly 77% over the past year and sits down nearly 97% over the last five years. Shares that once traded around $23 during the height of the Bitcoin treasury excitement opened recently near just $3.98.
Bitcoin Strategy Began After NYSE Warning
Sequans officially launched its Bitcoin treasury initiative on June 23, 2025, only weeks after receiving a warning from the New York Stock Exchange. The exchange had informed the company that both its market capitalization and shareholders’ equity had fallen below the NYSE’s minimum $50 million requirement.
Around that same time, Swan Bitcoin CEO Cory Klippsten publicly promoted Sequans as a future leader among Bitcoin treasury companies. The company itself leaned heavily into the narrative too, with executives repeatedly praising Bitcoin as a premier reserve asset.
CEO Georges Karam said at the time that Sequans held “strong conviction” in BTC as both a strategic reserve and a compelling long-term investment. Swan Bitcoin joined the effort as the company’s implementation partner, while Coinbase Prime handled custody services.
The treasury strategy itself was funded through a massive $384 million private placement involving several financial firms including Northland Capital Markets and B. Riley Securities. But beneath the surface, the structure carried serious risk from the beginning.
Only about $195 million came from equity sales. The remaining $189 million consisted of secured convertible debentures backed directly by the Bitcoin being purchased. In simple terms, Sequans had effectively pledged its BTC reserves to lenders from day one.
Buying High and Selling Low Crushed the Strategy
By October 2025, Sequans had accumulated 3,234 BTC at an average cost basis of approximately $116,643 per coin. That figure now looks brutal considering Bitcoin recently traded below $73,000.
Things unraveled quickly after that. Barely a month later, Sequans sold 970 BTC in order to pay down portions of its debt obligations. For many Bitcoin treasury advocates, that move completely violated the central philosophy of the strategy itself.
Michael Saylor, whose company Strategy became the poster child for corporate Bitcoin accumulation, famously told investors to “sell a kidney if you must, but keep the bitcoin.” Sequans did the opposite. It sold the Bitcoin.
Five months later, the company officially scrapped the strategy altogether. Its latest statement bluntly described the situation with three simple words: “Treasury Strategy Concluded.”
Now the messaging has changed entirely. Gone are the enthusiastic references to Bitcoin as a revolutionary reserve asset. Instead, CEO Karam says the debt redemption marks an “important turning point” as Sequans shifts focus back toward scaling its IoT semiconductor business.
Heavy Losses and Failed Treasury Experiment
Signs of the retreat had already appeared weeks earlier inside the company’s Q1 2026 earnings report. Buried inside the risk disclosures was a direct reference to plans for exiting the Bitcoin treasury model entirely.
The financial numbers behind the strategy painted an ugly picture too. Sequans reported a quarterly operating loss of around $50.5 million while revenue fell to just $6.1 million.
For the full 2025 fiscal year, the company recorded a net loss of roughly $109.3 million. Included inside that figure was a staggering $67.4 million unrealized impairment tied directly to its Bitcoin holdings. Meanwhile, the company’s accumulated deficit climbed to nearly $145.1 million.
In the end, the strategy that was supposed to improve resilience and create long-term shareholder value ended up doing neither. Sequans effectively bought Bitcoin near cycle highs, sold portions lower under financial pressure, and watched its stock collapse during the process.
SQNS shares now trade roughly 80% below the level seen when the treasury strategy launched and remain about 92% under their 52-week high. For critics of the Bitcoin treasury trend, Sequans may end up becoming one of the clearest examples yet of how quickly the model can unravel when leverage, volatility, and weak business fundamentals collide.
