Sequans Sells Half of Bitcoin Holdings as Losses Widen

TLDR

• Sequans sold 1,025 bitcoin in the first quarter of 2026 and reduced its holdings to 1,114 BTC.
• The company reported revenue of $6.1 million, down 24.8% from $8.1 million a year earlier.
• Operating losses reached $50.5 million, including $29.3 million in unrealized bitcoin impairment charges.
• Net loss totaled $54.3 million, compared with $7.3 million in the prior-year quarter.
• Sequans used bitcoin sale proceeds to redeem convertible debt and fund an ADS buyback program.

Sequans Communications reduced its bitcoin reserves during the first quarter of 2026 as revenue declined and losses widened. The Paris-based IoT chipmaker sold 1,025 bitcoin and cut its holdings nearly in half. The company also reported lower revenue and higher operating losses linked to its digital asset strategy.

Sequans Cuts Bitcoin Position as Losses Expand

Sequans lowered its bitcoin holdings from 2,139 BTC at the end of 2025 to 1,114 BTC by April 30, 2026. The company executed its second large bitcoin sale within six months as it adjusted its treasury plan. It had previously announced plans to accumulate 3,000 bitcoin as a long-term store of value.

The company reported $6.1 million in revenue for the quarter ended March 31, down 24.8% from $8.1 million a year earlier. The prior-year quarter included licensing and services revenue from Qualcomm, which did not recur. As a result, underlying product sales carried greater weight in the latest results.

Product sales rose 45% year over year, yet gross margin fell to 37.7% from 64.5%. Lower-margin hardware revenue replaced higher-margin licensing income and reduced profitability. Consequently, the shift in revenue mix increased pressure on operating performance.

Operating losses reached $50.5 million during the quarter. The figure included $29.3 million in unrealized bitcoin impairment charges and $11.7 million in realized losses from sales. Net loss totaled $54.3 million, or $3.73 per diluted ADS, compared with $7.3 million, or $0.29 per ADS, a year earlier.

On a non-IFRS basis, the company reported a net loss of $20.7 million, or $1.42 per ADS. This figure excluded impairment charges, stock-based compensation, and convertible debt accounting adjustments. Even so, the adjusted loss remained substantial.

Bitcoin Sales Support Debt Reduction and Balance Sheet Shift at Sequans

Sequans used proceeds from bitcoin sales to redeem convertible debt and fund an American Depositary Share buyback program. The company directed cash toward reducing liabilities and managing capital structure. CEO Georges Karam said the sales marked “decisive steps to simplify and strengthen our balance sheet.”

As of April 30, Sequans held 1,114 BTC. Of that amount, 817 BTC served as collateral for $35.9 million in outstanding convertible notes. The pledged bitcoin represented 73% of current holdings and carried a value of $62.3 million.

The pledged collateral exceeded the debt value because lenders required over-collateralization due to price volatility. The remaining convertible debt is scheduled for redemption by June 1, 2026. After redemption, all bitcoin holdings will become unrestricted.

Karam highlighted developments in the company’s core business. He cited a growing backlog and maturing design wins in IoT semiconductor products. He also referenced customer demand for Cat-M, Cat-1bis, and 5G eRedCap connectivity solutions.

Sequans reported interest in new RF transceivers for drone and defense applications. Shares declined 51.5% over the past six months to $3.01. The company ranks 40th among publicly traded firms holding bitcoin, while Strategy holds 818,334 BTC and Twenty One Capital holds 43,514 BTC.

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