Sequans Communications, the Paris-based chipmaker that went all-in on a Bitcoin treasury strategy less than a year ago, is selling off its remaining crypto holdings. The company has already offloaded 456 Bitcoin and plans to liquidate its remaining 658 BTC, effectively closing the book on a corporate treasury bet that never quite paid off.

How a chipmaker became a Bitcoin fund

Sequans (NYSE: SQNS) is, at its core, a fabless semiconductor company. It designs chips for IoT and 5G connectivity. But in July 2025, management decided the balance sheet needed a different kind of asset.

The company raised $384 million through a combination of equity offerings and convertible debentures, with the stated goal of accumulating over 3,000 BTC. It moved fast, starting with an initial purchase of 370 BTC and scaling to over 3,000 within weeks of securing the funding.

The unraveling

The sell-offs started in November 2025, when Sequans dumped 970 BTC to cut its convertible debt in half, reducing outstanding liabilities from $189 million to $94.5 million. That sale left the company holding 2,264 BTC.

Then came Q1 2026. Sequans sold another 1,025 BTC during the quarter, bringing holdings down to 1,114 BTC by April 30, 2026. Of those remaining coins, 817 were pledged as collateral against $35.9 million in outstanding convertible notes.

Now the company has sold an additional 456 BTC and announced plans to liquidate the remaining 658. That would take the once-3,000-plus BTC stash down to zero.

Revenue for Q1 2026 came in at just $6.1 million, a 24.8% decline year-over-year. The net loss for the quarter was $54.3 million. Sequans has targeted June 1, 2026 as the deadline for fully redeeming its remaining convertible debt. After that, any Bitcoin still on the books would theoretically be free from collateral restrictions. But based on the company’s stated plan to sell everything, it doesn’t look like management is interested in holding past that date.

The bigger picture for corporate Bitcoin treasuries

The company faced significant impairment charges and realized losses on its Bitcoin holdings throughout the period. When you’re forced to sell a volatile asset to meet debt covenants rather than choosing to sell at a favorable price, you’re no longer investing. You’re liquidating under duress.

The 658 BTC still earmarked for sale represents roughly $70 million at current prices. The $384 million it raised to buy Bitcoin is now being funneled back out through debt redemptions and asset sales, with the core chip business no healthier for the exercise.