Paris-based Sequans Communications bought 1,025 bitcoin in the course of the first quarter of 2026, slicing its digital asset reserves practically in half because the IoT semiconductor maker grappled with declining income and mounting losses tied to a treasury technique that has turned from formidable to burdensome.
The sale lowered Sequans’ bitcoin place from 2,139 BTC at year-end 2025 to 1,114 BTC by April 30, marking the second main disposal in six months for an organization that lower than a yr in the past proclaimed plans to build up 3,000 bitcoin as a “long-term retailer of worth”.
The monetary stress is clear within the numbers. Sequans reported income of $6.1 million for the quarter ended March 31, down 24.8% from $8.1 million a yr earlier. The year-over-year comparability reveals the corporate’s vulnerability: the prior-year interval included vital license and companies income from Qualcomm that did not recur, exposing the underlying weak spot in product gross sales.
Whereas product gross sales did enhance 45% from the year-ago quarter, gross margin compressed to 37.7% from 64.5% as lower-margin {hardware} displaced the profitable licensing revenue. For an organization burning money, the shift in income combine compounds the problem.
Sequans’ Bitcoin technique grew to become a burden
The bitcoin holdings that CEO Georges Karam as soon as framed as a balance-sheet asset have change into a supply of considerable losses. Working losses reached $50.5 million within the quarter, pushed by $29.3 million in unrealized impairment expenses on bitcoin holdings and $11.7 million in realized losses from promoting the digital property.
The corporate used bitcoin sale proceeds to redeem convertible debt and fund an American Depositary Share buyback program, a practical transfer to cut back liabilities however one which underscores how the treasury technique has shifted from accumulation to liquidation.
The remaining bitcoin holdings are largely encumbered. Of the 1,114 BTC held as of April 30, 817 bitcoin — representing 73% of present holdings valued at $62.3 million — remained pledged as collateral for $35.9 million in excellent convertible notes. The pledged bitcoin exceeds the debt worth, reflecting the over-collateralization required by lenders cautious of cryptocurrency volatility.
The remaining debt is scheduled for redemption by June 1, 2026, after which all bitcoin shall be unrestricted and out there on the market. Whether or not Sequans will retain these property or proceed liquidating to fund operations stays an open query.
Internet loss totaled $54.3 million, or $3.73 per diluted ADS, in comparison with $7.3 million, or $0.29 per ADS, within the prior-year quarter. Even on a non-IFRS foundation—which excludes impairment expenses, stock-based compensation, and accounting changes associated to convertible debt—the web loss was substantial at $20.7 million, or $1.42 per ADS.
CEO Georges Karam framed the bitcoin gross sales as “decisive steps to simplify and strengthen our steadiness sheet,” whereas highlighting momentum within the firm’s core IoT semiconductor enterprise.
He cited a rising backlog, maturing design wins, and buyer curiosity in Cat-M, Cat-1bis, and 5G eRedCap connectivity options, in addition to new RF transceivers for drones and protection functions.
Sequans shares have fallen 51.5% over the previous six months to $3.01, reflecting investor skepticism about each the bitcoin technique and the core enterprise trajectory.
The corporate ranks fortieth amongst publicly traded companies holding bitcoin, far behind Strategy’s 818,334 BTC and Twenty One Capital’s 43,514 BTC.
