Another cautionary tale for corporate crypto gamblers. French semiconductor company Sequans (NYSE: SQNS) announced on May 28 that it has sold nearly 80% of its Bitcoin (BTC) holdings to redeem all remaining convertible debt, formally ending its year-long "Bitcoin treasury" strategy. The firm now holds only 658 BTC and says it will fully return to its core IoT and 5G semiconductor business. The leveraged Bitcoin bet has wiped out more than 90% of the company's stock value from its July 2025 peak.
Sold 80% of Bitcoin to Pay Debts; CEO Calls It a "Turning Point"
Sequans issued an official statement confirming the completion of all convertible debt redemptions tied to its Bitcoin strategy. To repay debt, it was forced to divest roughly 80% of its BTC stash. The remaining 658 BTC are now unencumbered and will be "monetized" in the future, though the company has not specified whether through market sales or on-chain collateralization. CEO Georges Karam said: "Completing the debt redemption is a significant turning point for Sequans. We strengthened our balance sheet, simplified our capital structure, and can now fully focus on expanding our IoT semiconductor business."
From $385 Million Raise to Hasty Retreat: Sequans' Bitcoin Timeline
Sequans' Bitcoin adventure went from ambitious to disastrous in less than a year:
- June 2025 (Launch): Raised $385 million through debt and equity to start its Bitcoin treasury.
- July 2025 (Peak): Accumulated 3,000 BTC within weeks; CEO called Bitcoin "a long-term store of value for shareholders."
- November 2025 (Crisis): Bitcoin crashed from over $126,000 to around $80,000. Forced to sell 970 BTC in November and another 125 BTC in February 2026.
- Q1 2026 (Full Retreat): Sold another 1,025 BTC; the company confirmed it would not continue the Bitcoin treasury strategy.
Back to Core Business, but Stock Down 90%
Debt-free, Sequans refocuses on core technology: 4G/5G IoT semiconductors for smart meters, asset tracking, and telematics, as well as RF transceiver technology for defense and drone systems.
On the announcement day, SQNS shares rose about 2%, but compared to the July 2025 hype-driven peak, long-term investors have lost more than 90%. The episode serves as a stark warning for companies blindly following the corporate Bitcoin-buying trend.