Sequans Sells 1,025 Bitcoin As Revenue Falls, Losses Mount

Sequans Communications, a Paris-based IoT semiconductor maker, made headlines in the first quarter of 2026 by selling 1,025 bitcoin, nearly cutting its digital asset reserves in half. This move came as the company faced declining revenue and increasing losses due to a treasury strategy that had gone from ambitious to burdensome.

The sale of bitcoin reduced Sequans’ position from 2,139 BTC at the end of 2025 to 1,114 BTC by April 30, marking the second major disposal in six months. This was a significant shift for a company that had previously announced plans to accumulate 3,000 bitcoin as a long-term store of value.

The financial impact of these decisions was evident in Sequans’ quarterly results. Revenue for the quarter ending March 31 was reported at $6.1 million, a 24.8% decrease from the previous year. The company’s vulnerability was exposed as it faced a decline in product sales, with gross margin compressing to 37.7% from 64.5%.

CEO Georges Karam’s once optimistic view of bitcoin as a balance-sheet asset had now turned into substantial losses. Operating losses reached $50.5 million, driven by unrealized impairment charges on bitcoin holdings and realized losses from selling the digital assets. The company used proceeds from the bitcoin sales to redeem convertible debt and fund a share buyback program.

Despite the challenges, Karam remained hopeful about the company’s core IoT semiconductor business. He highlighted a growing backlog, maturing design wins, and customer interest in connectivity solutions like Cat-M, Cat-1bis, and 5G eRedCap, as well as new RF transceivers for drones and defense applications.

Sequans’ shares have seen a significant decline of 51.5% over the past six months, reflecting investor skepticism about both the bitcoin strategy and the overall business trajectory. The company currently ranks 40th among publicly traded firms holding bitcoin, lagging far behind other companies in the space.

As Sequans navigates through these challenges, the question remains whether the company will continue to liquidate its remaining bitcoin assets to fund operations or retain them for the long term. With debt redemption scheduled for June 1, 2026, the future of Sequans’ bitcoin holdings and financial strategy remains uncertain.