Bond-funded Bitcoin bet backfires with 90% stock crash! French semiconductor maker Sequans dumps 80% of its BTC to repay debt, admits defeat and returns to its IoT core business

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A Painful Lesson for Listed Companies Issuing Debt to Buy Crypto! French semiconductor company Sequans announced today (28th) that it has sold off nearly 80% of its Bitcoin (BTC) holdings to repay all related debts, officially ending its year-long "Bitcoin Treasury" strategy. The company currently retains only 658 BTC and announced a full return to its core IoT and 5G semiconductor business. This rollercoaster-like crypto speculation experiment, while initially generating buzz, has seen Sequans' stock price plunge over 90% from its peak as Bitcoin crashed. (Recap: Strategy founder Michael Saylor shouts "HODL"! Bitcoin loses $74K) (Background: Why has Bitcoin's crash decoupled from US stocks? Miners pivoting en masse to AI, US crypto regulations stalled...) Not every company can become the next Strategy (formerly MicroStrategy). Paris-headquartered semiconductor company Sequans Communications (NYSE: SQNS) released an official statement today (May 28, 2026), announcing the completion of all remaining convertible debt redemptions related to its "Bitcoin Treasury Strategy," officially drawing a curtain on this year-long aggressive investment strategy. According to reports, in order to redeem its massive debts, Sequans was forced to sell nearly 80% of the company's Bitcoin holdings. Currently, only 658 BTC remain on the company's books, but these remaining assets are now fully Unencumbered. Officials revealed that they will seek to "Monetize" these remaining bitcoins in the future, but did not specify whether this would involve gradually selling them on the market or converting them to on-chain collateral or other operations. Sequans CEO Georges Karam emphasized in the statement: "Completing the debt redemption marks an important turning point for Sequans." "We have strengthened our balance sheet, simplified our capital structure, and can now finally focus fully on expanding our Internet of Things (IoT) semiconductor business." Looking back at Sequans' rollercoaster Bitcoin strategy, the journey from ambitious launch to dismal exit took less than a year: - June 2025 (Launch): Sequans announced raising $385 million through debt and equity issuance, officially launching its Bitcoin Treasury Strategy. - July 2025 (Peak Moment): The company rapidly accumulated 3,000 BTC within just a few weeks. At the time, CEO Karam boldly declared that Bitcoin was a "long-term store of value for shareholders." - November 2025 (Crisis Erupts): As Bitcoin's price crashed from its all-time high of over $126,000 to around $80,000, the highly leveraged Sequans came under enormous pressure, being forced to sell 970 BTC in November, followed by another 125 BTC in February of the following year. - Q1 2026 (Full Retreat): The company sold off another 1,025 BTC. During the Q1 earnings call, officials formally confirmed they would "no longer continue" the Bitcoin Treasury Strategy. After shedding its heavy debt burden, Sequans announced that its future development focus will fully return to its core technology business, including: 4G / 5G IoT semiconductors for smart meters, asset tracking, and fleet management (Telematics), as well as expanding RF transceiver technology applications in defense and drone systems. On the day of the announcement, Sequans' stock price showed a slight rebound of about 2%, but the harsh reality is that compared to the historical high reached in July 2025 due to the "debt-financed crypto buying" narrative, long-term investors in the company's stock now face staggering book losses of over 90%. This incident undoubtedly sounds a loud warning bell for companies in the market blindly following the "corporate crypto buying" trend.

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