Sequans dumps bitcoin treasury after less than a year
Sequans Communications, the French semiconductor company that pivoted to bitcoin (BTC) treasury operations 11 months ago to escape a New York Stock Exchange delisting warning, is winding down its experiment.
The chipmaker confirmed today that it fully redeemed its convertible debt by selling BTC.
It also plans to quietly “monetize” its remaining 658 BTC. At its peak, the company held 3,234 BTC.
Sequans once vowed to accumulate over 3,000 BTC as a “long-term reserve.” Long-term apparently meant less than a year.
Sequans’ SQNS common stock opened for trading today down 77% over the past year and 97% over the past five years.
Its brief existence as a BTC treasury company, coinciding with heavy promotions by Swan Bitcoin and its CEO Cory Klippsten, began on June 23, 2025. That was 18 days after NYSE warned Sequans that its market capitalization and shareholders’ equity had both fallen below the exchange’s $50 million minimum.
“Sequans is poised to lead among bitcoin treasury companies,” Klippsten said with SQNS trading at $23.40 per share. Those same shares opened for trading today at $3.98.
Bitcoin strategy died on the launch pad
The original sales pitch was familiar to victims of digital asset treasury stocks that have almost all declined in value after the bubble popped in early summer 2025.
Using phrases that have aged like milk, Sequans CEO Georges Karam said the company had “strong conviction in BTC as a premier asset and a compelling long-term investment.”
Sequans named Swan Bitcoin as its implementation partner and Coinbase Prime as its custodian. In addition, Northland Capital Markets and B. Riley Securities served as joint lead placement agents on a $384 million private placement.
However, of this, only $195 million of that came from equity sold at $1.40 per American depositary share.
The remaining $189 million was secured convertible debentures collateralized by the BTC itself. From day one, Sequans was a treasury company whose reserve was effectively pledged to its lenders.
By October 3, Sequans held 3,234 BTC at an average cost basis of $116,643 per coin. For context, BTC this morning was worth less than $73,000.
Barely a month later, Sequans would become a leader among publicly traded BTC treasuries for the wrong reason — liquidating 970 BTC to pay off some of its debts.
That sale violated the core dogma of the BTC treasury playbook. Strategy founder Michael Saylor, the leader of the sector, had famously told investors to “sell a kidney if you must, but keep the bitcoin.” Sequans sold the BTC.
Read more: Why billions in Bitcoin treasury purchases can’t pump the price
‘Treasury Strategy Concluded’
Five months later, Sequans scrapped the strategy entirely. Today’s press release states simply, “Treasury Strategy Concluded.”
CEO Karam, who once described BTC as a premier asset, now says the debt redemption “marks an important turning point” and that Sequans is “fully focused on scaling our IoT semiconductor business.”
Gone is the praise of BTC’s unique properties and the commitment to long-term shareholder value through treasury management. There is only a plan to sell.
The Q1 2026 earnings release telegraphed the exit three weeks earlier.
Buried in the risk-factor section was an explicit reference to the company’s planned exit from its BTC treasury strategy. The same release booked a $50.5 million operating loss for the quarter.
Revenue fell to $6.1 million.
For all of 2025, Sequans reported a net loss of $109.3 million, including a $67.4 million unrealized impairment on BTC, per its annual report. Its accumulated deficit had reached a staggering $145.1 million.
In summary, Sequans lost tens of millions of dollars by buying BTC high and selling it low.
Its treasury strategy was meant to enhance financial resilience and create long-term shareholder value, but it did neither. SQNS now trades 80% lower than its high on the day it launched its BTC treasury, and 92% below its 52-week high.
Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.