Paris-based Sequans Communications sold 1,025 bitcoins during the first quarter of 2026, nearly halving its digital asset reserves as the IoT semiconductor maker grappled with declining revenue and mounting losses linked to a financial strategy that has turned from ambitious to burdensome.
The sale reduced Sequans’ bitcoin position from 2,139 BTC by the end of 2025 to 1,114 BTC by April 30, marking the second major divestment in six months for a company that less than a year ago proclaimed plans to accumulate 3,000 bitcoin as a “long-term store of value.”
The financial pressure is evident in the numbers. Sequans reported revenue of $6.1 million for the quarter ended March 31, down 24.8% from $8.1 million a year earlier. The year-over-year comparison reveals the company’s vulnerability: the previous year’s period included significant licensing and service revenue from Qualcomm that did not recur, revealing the underlying weakness in product sales.
While product sales rose 45% from the year-ago quarter, gross margin compressed to 37.7% from 64.5% as lower-margin hardware crowded out lucrative licensing revenue. For a cash-burning company, the shift in revenue mix exacerbates the challenge.
Sequans’ Bitcoin strategy became a burden
The bitcoin holdings that CEO Georges Karam once framed as a balance sheet asset have become a source of significant losses. Operating losses reached $50.5 million in the quarter, driven by $29.3 million in unrealized writedowns on bitcoin holdings and $11.7 million in realized losses from the sale of the digital assets.
The company used the bitcoin sale proceeds to redeem convertible debt and fund a U.S. depositary share buyback program, a pragmatic move to reduce liabilities but one that underscores how the Treasury’s strategy has shifted from accumulation to liquidation.
The remaining bitcoin holdings are largely impaired. Of the 1,114 BTC held per As of April 30, 817 bitcoin — equivalent to 73% of current holdings valued at $62.3 million — remained collateralized by $35.9 million in outstanding convertible bonds. The pledged bitcoin exceeds the debt value, reflecting the excess coverage required by lenders wary of cryptocurrency volatility.
The remaining debt is scheduled for repayment no later than June 1, 2026, after which all bitcoin will be unlimited and available for sale. Whether Sequans will retain these assets or continue to liquidate to fund operations remains an open question.
Net loss was $54.3 million, or $3.73 per share. diluted ADS compared to $7.3 million or $0.29 per ADS in the previous quarter. Even on a non-IFRS basis – which excludes impairment, share-based compensation and accounting adjustments related to convertible debt – the net loss was significant at $20.7 million, or $1.42 per share. ADS.
CEO Georges Karam framed the bitcoin sale as “crucial steps to simplify and strengthen our balance sheet,” while highlighting momentum in the company’s core IoT semiconductor business.
He cited a growing backlog, maturing design wins and customer interest in Cat-M, Cat-1bis and 5G eRedCap connectivity solutions, as well as new RF transceivers for drones and defense applications.
Sequan’s shares have fallen 51.5% over the past six months to $3.01, reflecting investor skepticism about both the bitcoin strategy and the trajectory of its core business.
The company ranks 40th among publicly traded bitcoin companies, far behind Strategy’s 818,334 BTC and Twenty One Capital’s 43,514 BTC.