Sequans sells half its Bitcoin as debt pressure shakes treasury plan

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Sequans sells half its <a href="https://investment-policy.com/btc-usd/">Bitcoin</a> as debt pressure shakes treasury plan

During the first three months of 2026, Sequans Communications sold 1,025 Bitcoin, reducing its Bitcoin holdings by almost half.

Summary

  • Sequans sold 1,025 Bitcoin after revenue dropped, losses widened, and debt obligations tightened during the quarter.
  • The chipmaker still holds 1,114 BTC, but 817 BTC remains pledged against convertible debt.
  • Strategy and K Wave moves add pressure to the wider corporate Bitcoin treasury trend.

The chipmaker, based in Paris, sold some of its Bitcoin holdings due to declining revenue and increasing losses. As of April 30th, the company held 1,114 Bitcoin, which was down from 2,139 Bitcoin at the end of 2025. The remaining Bitcoin was worth $84.9 million, with $35.9 million of that value backed by 817 Bitcoin used as collateral for convertible debt.

Sequans’ revenue for the first quarter was $6.1 million, a decrease of 24.8% compared to the first quarter of last year. Their gross margin also declined, falling to 37.7% from 64.5% in the same quarter of 2025.

The company reported a net loss of $54.3 million, which equals $3.73 per share. Operating losses totaled $50.5 million, including a $29.3 million loss due to the declining value of its Bitcoin holdings.

During the quarter, Sequans experienced $11.7 million in losses from selling Bitcoin. These funds were primarily used to pay off convertible debt and repurchase company stock.

Debt obligations limit treasury flexibility

Sequans currently has 817 Bitcoin held as security for $35.9 million in debt that can be converted into company stock. They plan to pay off this debt by June 1, 2026.

Once that date passes, Sequans will be free to sell any remaining Bitcoin it holds. This raises the question of whether they’ll keep the Bitcoin or sell more to improve their financial standing.

According to CEO Georges Karam, the company has worked to make its finances simpler and more stable. Sequans continues to prioritize its plans for IoT semiconductors and 5G technology.

Earlier Sequans sale set the stage

Sequans has reduced its Bitcoin holdings before. They previously sold 970 BTC in November 2025, which allowed them to pay down their debt from $189 million to $94.5 million.

Karam stated the company’s approach to holding Bitcoin, and their overall belief in its potential, remained the same. However, this recent sale highlights the challenges smaller public companies face when they need cash and have debts, while also holding Bitcoin reserves.

As a crypto investor, I’ve been watching Sequans closely. They started buying Bitcoin in 2025 after successfully raising funds specifically for that purpose. Now, their recent performance is proving a point I’ve believed for a while: holding Bitcoin on a corporate balance sheet can actually provide a company with much-needed cash when things get tough, like when they’re losing money or facing debt payments. It’s good to see real-world evidence that this strategy can work.

Bitcoin treasury trend faces another test

Sequans is adjusting its plans as other public companies rethink their Bitcoin investments. Recently, K Wave Media shifted as much as $485 million from its Bitcoin strategy to focus on AI infrastructure, like data centers and GPU operations.

Following the announcement, K Wave’s stock price dropped as investors considered the company’s move away from primarily focusing on Bitcoin. The company explained the changes were also aimed at paying down debt and potentially launching a new brand.

Sequans recently sold some of its Bitcoin holdings, sparking further discussion about whether companies should keep Bitcoin as part of their financial reserves. While Sequans still owns over 1,100 BTC, its recent financial results demonstrate that factors like debt, losses, and declining revenue can push a company to reconsider how it manages its funds.

I recently learned, as crypto.news reported earlier today, that Michael Saylor’s company, Strategy, might sell some of its Bitcoin to be able to pay dividends to shareholders. This comes after they announced a significant first-quarter loss of $12.54 billion.

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2026-05-06 11:05