Sequans Discontinues Bitcoin Treasury Strategy
French semiconductor manufacturer Sequans has decided to discontinue its Bitcoin treasury strategy, marking a significant shift for the company after less than a year in the cryptocurrency space. This decision is largely driven by the need to manage debt, as Sequans has sold a substantial portion of its Bitcoin holdings to repay convertible debt and refocus on its primary business of chip production.
Debt Management and Bitcoin Holdings
On May 28, Sequans announced the successful redemption of all its remaining convertible debt due by July 2025. This strategic financial maneuver resulted in the company retaining approximately 658 Bitcoin, which it plans to sell gradually. The decision to sell comes amid a broader trend in the market, as interest in cryptocurrencies has waned and Bitcoin prices have dropped significantly. Recently, Bitcoin was trading around $75,000, a steep decline from its peak of over $126,000, drastically affecting the valuation of Sequans’ earlier investments.
Initial Investment and Market Challenges
Sequans initially embarked on its Bitcoin investment strategy in July 2025, raising around $384 million through a combination of equity and convertible debt, allowing it to acquire more than 3,200 BTC at an average purchase price close to $116,000 per coin. However, as the value of Bitcoin plummeted and the company’s semiconductor revenue also fell, Sequans found its investment strategy untenable. Sales accelerated, with over 80% of its Bitcoin holdings now disposed of, including a recent sale of 456 BTC.
Strategic Turnaround
CEO Georges Karam emphasized the strategic turnaround, stating, “We have strengthened our balance sheet, simplified our capital structure, and are now fully focused on scaling our IoT semiconductor business.”
The trend of liquidating crypto assets is not unique to Sequans, as numerous smaller firms have also reported the necessity to sell off their crypto holdings amid a struggling market.
Future Focus
Looking ahead, Sequans aims to concentrate on advancing its 4G LTE-M, Cat-1bis chipsets, and the development of its 5G eRedCap platform, with the goal of achieving greater profitability and stability amid evolving technology trends in the semiconductor industry.
