Paris-based Sequans Communications sold 1,025 bitcoins during the first quarter of 2026, nearly halving its digital asset reserves as the Internet of Things semiconductor maker suffered falling revenues and mounting losses tied to a treasury strategy that went from ambitious to stressful.
the sale Sequans’ bitcoin value was reduced from 2,139 bitcoins at the end of 2025 to 1,114 bitcoins by April 30, marking the second major sale in six months for a company that announced less than a year ago plans to accumulate 3,000 bitcoins as a “long-term store of value.”
The financial pressures are clear 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. A year-over-year comparison reveals the company’s weakness: the prior-year period included significant revenue from licenses and services from Qualcomm, which Not repeatedAnd revealing the hidden weakness in product sales.
While product sales increased 45% compared to the same quarter last year, gross margin fell to 37.7% from 64.5% as lower-margin devices displaced lucrative licensing income. For a company burning cash, the shift in revenue mix compounds the challenge.
Sequans’ Bitcoin strategy has become a burden
Bitcoin collectibles that CEO George Karam once described as… Balance sheet assets It became a source of huge losses. Operating losses reached $50.5 million in the quarter, driven by $29.3 million of unrealized impairment charges on bitcoin holdings and $11.7 million of realized losses on the sale of digital assets.
I used the company Proceeds from selling Bitcoin To repay convertible debt and fund the U.S. depositary stock buyback program, a practical move to reduce liabilities but highlights how the Treasury strategy is shifting from accumulation to liquidation.
The remaining Bitcoin holdings are largely collateralized. Of the 1,114 bitcoins held as of April 30, 817 bitcoins — representing 73% of existing holdings worth $62.3 million — remained pledged as collateral for $35.9 million of outstanding convertible notes. The pledged bitcoin exceeds the value of the debt, reflecting the over-collateralization required by lenders wary of the cryptocurrency’s volatility.
The remaining debt is scheduled to be repaid by June 1, 2026, after which all bitcoins will be unrestricted and available for sale. Whether Sequans will retain those assets or continue to liquidate to fund operations remains an open question.
Net loss was $54.3 million, or $3.73 per diluted ADS, compared to $7.3 million, or $0.29 per diluted ADS, in the prior-year quarter. Even on a non-IFRS basis — which excludes impairment charges, stock-based compensation, and accounting adjustments related to convertible debt — the net loss was large at $20.7 million, or $1.42 per ADS.
CEO George Karam called the bitcoin sales “critical steps to simplify and strengthen our balance sheet,” while highlighting momentum in the company’s core IoT semiconductor business.
He noted growing backlog, mature 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.
Sequans shares have fallen 51.5% over the past six months to $3.01, reflecting investor doubts about Bitcoin’s strategy and underlying business trajectory.
The company ranks 40th among publicly traded companies that own Bitcoin, which is far behind Strategy 818,334 Bitcoin and Twenty One Capital worth 43,514 BTC.
