Paris-based Sequans Communications sold 1,025 bitcoins in the first quarter of 2026, cutting its digital reserves by nearly half as the IoT semiconductor maker grappled with declining revenue and heavy losses linked to a financial model that has shifted from austerity to leverage.
The to sell has shortened Sequans’ bitcoin position from 2,139 BTC at the end of the year 2025 to 1,114 BTC on April 30, the second major loss in six months for the company that less than a year ago announced the intention to accumulate 3,000 bitcoin as a “long store price”.
Financial stress is reflected in the statistics. Sequans reported $6.1 million in revenue for the quarter ended March 31, down 24.8% from $8.1 million last year. Year-on-year comparisons reveal the company’s risk: the period of previous years included a large amount of licenses and services from Qualcomm itself. it never came backshowing real weakness in sales.
While product sales rose 45% from the previous quarter, gross margin dropped to 37.7% from 64.5% as lower-cost equipment offset revenue gains. For a company that’s burning cash, a change in the mix of funds creates challenges.
Sequans’ Bitcoin strategy became a burden
Bitcoin reserves that CEO Georges Karam once listed as a balance-sheet asset it has been the source of many losses. Operating losses reached $50.5 million in the quarter, led by $29.3 million in unrealized charges in the bitcoin industry and $11.7 million in losses from the sale of digital assets.
The company was used bitcoin trading redeeming convertible bonds and funding the American Depositary Share buyback program, a good move to reduce debt but one that shows how the economy’s strategy has shifted from accumulation to depletion.
What is left of bitcoin is more. Of the 1,114 BTC that occurred as of April 30, 817 bitcoin – which represents 73% of the current assets with a value of $ 62.3 million – remained as collateral for $ 35.9 million in convertible notes. The pledged Bitcoin exceeds the value of the loan, reflecting the over-investment of the borrowers who are wary of the volatility of cryptocurrencies.
The remaining debt is scheduled to be redeemed by June 1, 2026, after which all bitcoin will be unlimited and tradable. Whether the Sequans will keep the property or continue to fund the project is still an open question.
Net loss was $54.3 million, or $3.73 per diluted ADS, compared to $7.3 million, or $0.29 per ADS, in the prior year. Even on a non-IFRS basis—which excludes impairment charges, asset-based payments, and accounting changes related to the convertible loan—the net loss was higher at $20.7 million, or $1.42 per ADS.
CEO Georges Karam pitched bitcoin trading as “a reliable way to scale and strengthen our website,” while pointing to the company’s growing IoT semiconductor business.
He also cited increased scalability, mature design success, and customer interest in Cat-M, Cat-1bis, and 5G eRedCap connectivity solutions, as well as new RF transceivers for drones and security applications.
Shares of Sequans have fallen by 51.5% in the past six months to $3.01, which reflects the skepticism of investors about both the bitcoin strategy and the way to start the business.
The company is ranked 40th among publicly traded companies that own bitcoin, far behind 818,334 BTC route and Twenty One Capital’s 43,514 BTC.
