Sequans Sells 1,025 BTC, Pledges 817 as Debt Collateral

Paris-based chipmaker Sequans Communications sold 1,025 Bitcoin during the first quarter of 2026, reducing its holdings to 1,114 BTC and pledging 817 of those coins as collateral for $35.9 million in outstanding convertible notes due June 1. The company reported a net loss of $54.3 million for the quarter.

Company filings show Bitcoin holdings fell from 2,139 BTC at year-end 2025 to 1,114 BTC by the end of April. Sequans recorded $11.7 million in realized losses from the asset sales and $29.3 million in unrealized impairment losses on its remaining crypto position.

Sequans posted an operating loss of $50.5 million in the quarter. Net loss per diluted American depositary share was $3.73, compared with a $7.3 million loss a year earlier.

Revenue declined 24.8% year over year to $6.1 million, even as product sales rose 45%. Gross margin narrowed to 37.7% from 64.5% as lower-margin hardware sales replaced higher-margin licensing revenue.

The company began accumulating Bitcoin in July 2025 as part of a treasury diversification plan. In November 2025, Sequans sold 970 BTC to redeem convertible debt.

Of the 1,114 BTC remaining after the Q1 sale, 817 BTC are pledged against the convertible notes that mature on June 1. Sequans’ filings state that once the debt matures, the pledged coins will become unrestricted and may be sold or used for other purposes.

In a statement accompanying the results, CEO Dr. Georges Karam wrote that the company had taken “decisive steps to simplify and strengthen our balance sheet.”

Sequans’ Nasdaq-listed shares have fallen about 42% over the past six months and were trading near $3.43 at the most recent quote. The stock was down modestly on the day the results were released.

Several publicly traded firms that built Bitcoin treasuries during last year’s crypto rally have reduced holdings or changed policies after recording large unrealized losses. Movements in Bitcoin’s price earlier this year, and subsequent partial recoveries, have affected the valuation of corporate crypto treasuries and the size of impairment charges reported in recent quarters.

Sequans’ Q1 results reflect both operational pressures in its semiconductor business and valuation changes in its crypto assets, according to the company’s financial filing.