Sequans Communications, a French semiconductor company specializing in IoT chips, liquidated 1,025 Bitcoin during the first quarter of 2026, reducing its holdings from 2,139 BTC to 1,114 BTC. The sale was disclosed in a Q1 earnings report and an SEC filing, revealing that the firm used the proceeds to cover debt redemptions and share buybacks.
The decision came as Sequans reported a 24.8% year-on-year revenue drop to $6.1 million, compared to $8.1 million in Q1 2025, and a net loss of $54.3 million. The company also recorded $29.3 million in unrealized losses from Bitcoin impairment and $11.7 million in realized losses on the asset sales. With 73% of its remaining Bitcoin pledged as debt collateral, Sequans announced it will fully abandon its cryptocurrency treasury strategy after redeeming all obligations before June 1, 2026.
Sequans had previously accumulated Bitcoin as part of a corporate treasury diversification trend. The forced sale highlights the risks of holding volatile digital assets when operational cash flows weaken. The company’s stock price dipped during the Q1 earnings call, reflecting investor concern over both the revenue decline and the shrinking Bitcoin position. The case underscores a broader shift: companies under financial pressure are prioritizing capital stability over long-term crypto exposure, even as Bitcoin attempts to recover the $81,000 level. Sequans’ next quarterly filing will indicate whether it retains its remaining Bitcoin or continues to unwind its position.
