Sequans Dumps Half Its Bitcoin, Reports ₱2.52 billion ($41 million) Loss
Sequans Communications' ambitious Bitcoin accumulation strategy has collapsed under debt pressure. The Paris-based IoT chipmaker liquidated over half its holdings in Q1 2026, forcing writedowns that pushed quarterly losses to ₱3.34 billion ($54.3 million).
Key Takeaway
Sequans' Bitcoin treasury bet turned into a $41 million loss as debt pressure forced liquidation.
Sequans Communications unloaded 1,025 Bitcoin in the first three months of 2026, slashing its treasury from 2,139 BTC at year-end to just 1,114 BTC by April 30.
The Paris-based semiconductor maker reported ₱720.19 million ($11.7 million) in realized losses from the sale and took another ₱1.8 billion ($29.3 million) hit in unrealized impairment charges. Sequans CEO Georges Karam called the Bitcoin sales decisive steps to simplify and strengthen the balance sheet — a sharp pivot from less than a year ago when the company announced plans to accumulate 3,000 BTC as a long-term store of value.
The company's core business is struggling too. Revenue dropped 24.8% year-over-year to ₱375.48 million ($6.1 million) in Q1 2026, down from $8.1 million in Q1 2025. Gross margin collapsed from 64.5% to 37.7%. Sequans blamed the decline partly on lost non-recurring license and services revenue from Qualcomm. Product sales jumped 45%, but it wasn't enough to offset the broader decline.
Sequans now holds 817 BTC — 73% of its remaining holdings — pledged as collateral against $35.9 million in outstanding convertible notes due June 1. That collateral is worth $62.3 million at current prices, meaning the company is over-collateralized but trapped. Its share price dropped 51.5% over the past six months to $3.01, reflecting investor fatigue with both its Bitcoin experiment and its chip business.
The company ranks 40th among publicly traded firms holding Bitcoin. Strategy leads the pack with 818,334 BTC, while Twenty One Capital holds 43,514 BTC. Sequans sold another 1,000 BTC in late 2025 to pay down debt, signaling its accumulation target was already falling apart before this quarter's selloff. Sequans CEO Karam highlighted momentum in the company's IoT semiconductor business, citing backlog and design wins in Cat-M, Cat-1bis, and 5G eRedCap solutions, plus RF transceivers for drones and defense, ahead of the June 1 convertible debt redemption deadline.
This article was written based on reporting from Bitcoin Magazine.
