Sequans Communications, a France-based semiconductor firm, officially terminated its cryptocurrency treasury strategy less than one year after inception. In a Thursday regulatory filing, the company disclosed it holds 658 BTC, valued at approximately $48 million at the time of publication. These assets are described as fully unencumbered and unrestricted, signaling an immediate shift to monetize remaining holdings over time to fund core operations. This strategic reversal coincides with a broader refocusing on Internet of Things (IoT) semiconductor growth, abandoning the digital asset allocation model launched in June 2025. The market reacted swiftly to the announcement, with NYSE-traded shares surging more than 14.5% in morning trading despite having shed over 75% of their value since last June.

The decision to exit the treasury strategy follows the full redemption of convertible debt issued in July 2025, which was funded by the prior liquidation of a portion of the company's Bitcoin holdings. CEO Georges Karam stated that the organization is now fully focused on scaling its IoT semiconductor business, explicitly omitting any future plans to expand crypto investments. This marks a significant departure from the stance taken a year ago when Sequans announced the sale of $384 million in equity securities and convertible secured debentures. At that time, Karam characterized Bitcoin as a premier asset and a compelling long-term investment, a sentiment that has since been reversed by operational realities and market conditions.

Data compiled by Woofun AI indicates that the Bitcoin price has declined by more than 30% since the launch of Sequans' treasury strategy, dropping from a high of $105,419 to $72,780. This depreciation likely influenced the decision to liquidate assets and redeploy capital into the core semiconductor business. The move reduces the total number of publicly traded European companies investing in Bitcoin and other cryptocurrencies to 40, according to website Bitcoin Treasuries. This contraction highlights the volatility inherent in corporate treasury strategies tied to digital assets, particularly when underlying asset prices diverge significantly from acquisition costs.

In contrast to the European retreat, the US market continues to see aggressive accumulation. Bitcoin Treasuries lists 67 publicly traded US companies holding Bitcoin, including Strategy, which announced a $2 billion purchase on May 18. This latest acquisition brought Strategy's total holdings to 843,738 BTC, reinforcing its position as a dominant institutional holder. While Sequans exits the space, other entities remain committed to the asset class, creating a bifurcated landscape where corporate adoption varies sharply by region and financial health. The divergence suggests that treasury strategies are increasingly contingent on specific liquidity needs rather than broad macroeconomic bullishness.

Woofun AI notes that the European sector faces unique pressures compared to its American counterparts, as evidenced by recent activity among French peers. Capital B, another France-based Bitcoin treasury company, announced last week that it purchased more than $15 million worth of BTC, bringing its total holdings to 3,135 coins. Despite this accumulation, Capital B's stock price has fallen more than 16% since the announcement, mirroring the broader market skepticism surrounding crypto-treasury models in the region. BitcoinTreasuries data shows Capital B is currently the 25th-largest BTC treasury globally, trailing behind Germany's Bitcoin Group SE.

The contrasting trajectories of Sequans and Capital B illustrate the fragmented nature of corporate Bitcoin adoption in Europe. While some firms double down on accumulation despite share price declines, others like Sequans prioritize balance sheet stability and core business scaling. The liquidation of 658 BTC by Sequans represents a tangible reduction in corporate demand, potentially influencing local market sentiment. As the industry matures, the distinction between speculative treasury plays and operational funding mechanisms becomes increasingly critical for investors assessing long-term viability.

Woofun AI analysis suggests that the retreat of established semiconductor firms like Sequans may signal a broader recalibration of risk tolerance among European public companies. With the number of European Bitcoin treasuries dropping to 40, the region appears to be consolidating around fewer, more specialized players.

Meanwhile, the US market's continued expansion, led by massive purchases from entities like Strategy, underscores a transatlantic divergence in corporate strategy. Future movements will likely depend on whether Bitcoin stabilizes above current levels or if further price erosion forces additional liquidations across the sector.