Sequans sells half its Bitcoin as debt pressure shakes treasury plan

Sequans Communications sold 1,025 Bitcoin during the first quarter of 2026, nearly cutting its corporate Bitcoin reserve in half. 

The Paris-based chipmaker made the sale as revenue fell and losses widened. The company held 1,114 BTC as of April 30, down from 2,139 BTC at the end of 2025. Its remaining Bitcoin had a market value of $84.9 million, with 817 BTC pledged as security for $35.9 million in convertible debt.

Sequans reported first-quarter revenue of $6.1 million, down 24.8% from the same period last year. Gross margin fell to 37.7%, compared with 64.5% in the first quarter of 2025.

The company posted a $54.3 million net loss, or $3.73 per diluted ADS. Its operating loss reached $50.5 million and included $29.3 million in unrealized Bitcoin impairment losses.

The quarter also included $11.7 million in realized losses from Bitcoin sales. Sequans said the sales were mainly used to finance convertible debt redemption and its ADS buyback program.

Debt obligations limit treasury flexibility

Sequans said 817 BTC remained pledged as collateral for the remaining $35.9 million in convertible debt. The company expects to redeem that debt by June 1, 2026.

After that date, the remaining Bitcoin will become unrestricted and available for sale. That detail keeps attention on whether Sequans will hold the rest of its Bitcoin or use more of it for balance sheet needs.

Chief executive Georges Karam said the company had taken steps to simplify and strengthen its balance sheet. He also said Sequans remains focused on its IoT semiconductor strategy and 5G roadmap.

Earlier Sequans sale set the stage

This was not the first time Sequans reduced its Bitcoin treasury. As previously covered, the company sold 970 BTC in November 2025 to cut debt from $189 million to $94.5 million.

At the time, Karam said the company’s Bitcoin treasury strategy and long-term view on Bitcoin had not changed. The latest sale now puts more focus on how smaller public firms manage Bitcoin reserves when debt and cash needs rise.

Sequans started its Bitcoin treasury push in 2025 after raising capital for Bitcoin purchases. The new results show that corporate Bitcoin holdings can serve as liquidity when operating losses and debt deadlines tighten.

Bitcoin treasury trend faces another test

Sequans’ move comes as other public firms reassess Bitcoin treasury plans. In a recent update, K Wave Media redirected up to $485 million from a Bitcoin treasury plan into AI infrastructure, including data centers and GPU operations.

That report said K Wave shares fell after the announcement, as investors weighed the shift away from a Bitcoin-focused strategy. The company also tied the restructuring to debt reduction and a possible rebrand.

Sequans’ latest sale adds another case to the debate over corporate Bitcoin reserves. The company still holds more than 1,100 BTC, but its latest earnings show how debt, losses, and lower revenue can force a change in treasury use.

Moreover, as reported by crypto.news earlier today, Michael Saylor said Strategy may sell part of its Bitcoin holdings to fund dividend payments after reporting a $12.54 billion first-quarter loss.