Paris-based chipmaker Sequans Communications has fully exited its bitcoin treasury, selling approximately 2,120 BTC over several months to repay convertible debt. According to reports from The Block, the company now holds just 658 BTC on its balance sheet, all of which is fully unrestricted following the retirement of all outstanding obligations. The sell-down was executed in stages, with 970 BTC sold in November 2025, 125 BTC in February 2026, and 1,025 BTC during Q1 2026, reducing holdings to 1,114 BTC as of April 30. The company has now sold 456 additional BTC and plans to offload the remaining 658 BTC, effectively ending its digital asset treasury strategy. As per ME News, the company sold 80% of its Bitcoin holdings to accomplish the debt repayment, with the remaining 658 BTC to be gradually liquidated in the future.
The bitcoin sales generated $11.7 million in realized losses during Q1 2026 alone, a period when revenue declined and losses widened, creating pressure on the treasury model that depended on continued bitcoin price appreciation to service debt. As reported by The Block, the company had launched its bitcoin treasury in July 2025 with a $384 million private placement, comprising $195 million in equity and $189 million in convertible notes, with proceeds deployed almost entirely into BTC. The company used proceeds from the Bitcoin sale to fully redeem convertible debt issued in July 2025, eliminating roughly $37 million in obligations due by early June. CEO Georges Karam stated that the completion of debt redemption marks an important turning point, strengthening the balance sheet and simplifying the capital structure. According to ME News, the company is now completely debt-free following this strategic exit.
According to the company's announcement, Sequans will now concentrate on scaling its 4G/5G IoT semiconductor, RF transceiver, and defense wireless application businesses. CEO Georges Karam emphasized that the company has strengthened its balance sheet and simplified its capital structure, allowing it to focus fully on its core operations. The reversal positions Sequans among a small group of companies that tested the corporate bitcoin treasury model and retreated, contrasting with firms like Strategy that continue accumulating bitcoin. Karam said the company plans to prioritize execution across its 4G and RF transceiver businesses, improve its path toward profitability, and continue advancing its 5G roadmap as visibility improves and its production pipeline expands. As per ME News, the company will now focus on 4G/5G IoT chip applications including smart metering, asset tracking, vehicle connectivity, and industrial IoT, while emphasizing its 4G LTE-M, Cat-1bis, and 5G eRedCap platform development.
The company's bitcoin treasury experiment resulted in significant financial losses, with Sequans stock declining 80% since its first bitcoin acquisition and 92% below its 52-week high. The stock opened at $3.98 today, down 77% over the past year and 97% over the past five years. At its peak, the company held 3,234 BTC at an average cost basis of $116,643 per coin, while current bitcoin prices are worth less than $73,000. For all of 2025, Sequans reported a net loss of $109.3 million, including a $67.4 million unrealized impairment on BTC, with its accumulated deficit reaching a staggering $145.1 million. The company's Q1 2026 earnings release booked a $50.5 million operating loss, telegraphing the exit three weeks earlier through an explicit reference to the planned exit from its BTC treasury strategy.
