Sequans Communications (NYSE: SQNS), the Paris-based cellular IoT semiconductor company, has completed the full redemption of its remaining convertible debt, funded by the sale of a portion of its Bitcoin holdings — bringing a short-lived and costly digital asset treasury experiment to a close.
The company now holds approximately 658 BTC, described as “fully unencumbered,” following the retirement of all convertible notes issued in July 2025. Sequans said it plans to monetize the remaining Bitcoin over time, though it did not specify a timeline or method.
Sequans’ bitcoin bet that backfired
The retreat caps a strategy that began in June 2025, when Sequans announced plans to raise $385 million through debt and equity to start a Bitcoin treasury.
By late July, CEO Georges Karam described Bitcoin as a “long-term store of value for our shareholders,” with a target of accumulating 3,000 BTC within weeks. The company crossed that threshold by month’s end.
The unwind began in November 2025 after Bitcoin fell from an all-time high above $126,000 to roughly $80,000. Sequans sold 970 BTC that month, followed by 125 BTC in February 2026, and another 1,025 BTC during the first quarter — reducing holdings to 1,114 BTC as of April 30. Thursday’s announcement confirmed a further reduction to 658 BTC, reflecting total sales of more than 80% of peak holdings.
Investors who bought shares at the height of Bitcoin enthusiasm last July are sitting on losses of more than 90%. SQNS shares rose 10% on Thursday following the announcement.
With the debt retired, Sequans transitions to what it calls a “near debt-free balance sheet,” giving the company greater financial flexibility heading into the second half of 2026. The move eliminates collateral obligations tied to Bitcoin’s price volatility, a risk that management had flagged in prior filings.
“We have strengthened our balance sheet, simplified our capital structure, and are now fully focused on scaling our IoT semiconductor business,” Karam said in Thursday’s statement.
Sequans’ renewed focus centers on its 4G LTE-M and Cat-1bis chipsets, which serve markets including smart metering, asset tracking, telematics, security, and industrial IoT. The company is also advancing its 5G eRedCap platform — a next-generation cellular IoT standard — as a long-term growth driver.
Karam framed Thursday’s announcement as the start of a focused operational phase. “Execute on our growing 4G and RF transceiver product portfolio, accelerate our path to profitability, and advance our 5G roadmap,” he said.
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