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Sequans Communications reduced its bitcoin reserves in 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, while reporting lower revenue and higher operating losses tied to its digital asset strategy.
Sequans lowered its bitcoin holdings from 2,139 BTC at the end of 2025 to 1,114 BTC by April 30, 2026. The sale represented the company’s second large bitcoin transaction within six months as it adjusted its treasury plan. Sequans had previously said it aimed to accumulate 3,000 bitcoin as a long-term store of value.
For the quarter ended March 31, Sequans reported revenue of $6.1 million, down 24.8% from $8.1 million in the prior-year period. The year-ago quarter included licensing and services revenue from Qualcomm that did not recur, shifting the weight of results toward underlying product sales.
Product sales rose 45% year over year, but gross margin fell to 37.7% from 64.5%. The company attributed the decline to a change in revenue mix, with lower-margin hardware revenue replacing higher-margin licensing income, which increased pressure on profitability.
Operating losses totaled $50.5 million for the quarter. The loss included $29.3 million in unrealized bitcoin impairment charges and $11.7 million in realized losses from bitcoin sales. Net loss was $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, Sequans reported a net loss of $20.7 million, or $1.42 per ADS. This measure excluded impairment charges, stock-based compensation, and convertible debt accounting adjustments, though the adjusted loss remained substantial.
Sequans said it 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 its capital structure. CEO Georges Karam said the sales were “decisive steps to simplify and strengthen our balance sheet.”
As of April 30, Sequans held 1,114 BTC. Of that total, 817 BTC was pledged as collateral for $35.9 million in outstanding convertible notes. The pledged bitcoin represented 73% of current holdings and had a value of $62.3 million.
The collateral value exceeded the debt amount due to lender requirements for over-collateralization amid bitcoin price volatility. The remaining convertible debt is scheduled for redemption by June 1, 2026, after which all bitcoin holdings will become unrestricted.
Karam pointed to developments in Sequans’ core IoT semiconductor business, citing a growing backlog and maturing design wins. He also referenced customer demand for Cat-M, Cat-1bis, and 5G eRedCap connectivity solutions.
The company also reported interest in new RF transceivers for drone and defense applications.
Sequans shares fell 51.5% over the past six months to $3.01. The company ranks 40th among publicly traded firms holding bitcoin, according to the report, with Strategy holding 818,334 BTC and Twenty One Capital holding 43,514 BTC.
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