French Chipmaker Sequans Dumps Half Its Bitcoin as Treasury Hype Meets Reality

In brief

• Sequans Communications sold 1,025 Bitcoin during Q1 2026 after kicking off its accumulation strategy last summer.
• Revenue plunged 24.8% year-on-year to $6.1 million as operating losses ballooned to $50.5 million.
• Of its remaining Bitcoin, 817 BTC is pledged as collateral for $35.9 million in convertible notes due June 1.

Paris-based chipmaker Sequans Communications liquidated 1,025 Bitcoin during the first quarter of 2026, nearly halving its crypto reserves as revenue collapsed and losses mounted.

The semiconductor manufacturer's Bitcoin holdings fell from 2,139 BTC at year-end 2025 to 1,114 BTC by April's close, according to a Q1 earnings report, with the sale generating critical liquidity as the company posted a $54.3 million net loss—or $3.73 per diluted ADS—compared to $7.3 million a year earlier.

The quarterly damage included $29.3 million in unrealized Bitcoin impairment losses and $11.7 million in realized losses from the asset sales, according to financial filings.

Revenue deterioration drove the distressed sale, with total income dropping to $6.1 million despite a 45% jump in product sales. Gross margins compressed to 37.7% from 64.5% as lower-margin hardware displaced lucrative licensing deals. The company has pledged 817 of its remaining Bitcoin as collateral for $35.9 million in outstanding convertible notes, leaving minimal flexibility in its crypto treasury.

"We have taken decisive steps to simplify and strengthen our balance sheet," said Sequans CEO Dr. Georges Karam, in a statement.

Sequans (SQNS) shares have fallen about 42% over the last six months to recently trade at $3.43, per data from Yahoo Finance, with the Nasdaq-listed stock reflecting deepening investor skepticism about the company's trajectory. SQNS shares are down 2.5% on the day.

The forced liquidation mirrors pressure across corporate Bitcoin holders, with some companies rethinking their plans after a rush towards crypto treasuries amid last year’s market boom, while other longer-running Bitcoin holders have lessened their exposure amid business challenges.

MARA Holdings, the largest public Bitcoin miner by BTC held, expanded its treasury policy in 2026 to permit selling accumulated reserves after recording a $422.2 million fair value decrease on its 53,822 BTC holdings last year. The miner has started selling its holdings alongside a recent round of layoffs. Other Bitcoin mining firms that have sold off BTC holdings in recent months include Riot Platforms, Hut 8, and Cango.

Publicly traded Bitcoin treasury firm Nakamoto Holdings said in March that it sold off part of its BTC holdings as its share price hit a new low. Just this week, South Korean entertainment firm K Wave Media said it would divert $485 million in funding earmarked for its Bitcoin treasury strategy to instead pivot towards AI infrastructure.

Sequans began accumulating Bitcoin in July 2025 as part of a treasury diversification strategy that Karam once positioned as a "long-term store of value for our shareholders." Last August, it revealed a plan to sell up to $200 million worth of shares to fuel Bitcoin buys.

The latest sale marks the second major liquidation in six months. Sequans previously sold 970 BTC in November 2025, reducing holdings from 3,234 to 2,264 Bitcoin to redeem $94.5 million in convertible debt. Karam characterized that transaction as a "tactical decision" at the time.

The chipmaker's remaining debt matures June 1, after which all Bitcoin holdings become unrestricted and available for potential liquidation.

Bitcoin plunged in price earlier this year, falling close to $60,000 after peaking above $126,000 last October. It has ticked up since those recent lows, however, topping the $81,000 mark early Tuesday for the first time since January.

Users on Myriad—a prediction market platform operated by Decrypt's parent company, Dastan—believe that Bitcoin will continue to rise, penciling a roughly 86% chance that its next stop is a rise to $84,000 rather than a drop to $55,000. Those odds have improved 16% over the last week.

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