In Q1 2026, Sequans Communications, headquartered in Paris, liquidated approximately half of its Bitcoin reserves, selling 1,025 BTC as the company faced declining revenue and escalating losses. The chipmaker’s holdings decreased from 2,139 BTC at the close of 2025 to 1,114 BTC by April, as detailed in their earnings report. This sale was crucial for securing liquidity after recording a $54.3 million net loss, or $3.73 per diluted ADS, up significantly from a $7.3 million loss a year prior.
The company’s financial filings revealed that it encountered $29.3 million in unrealized impairment losses on Bitcoin and an additional $11.7 million in realized losses from the asset sales. The revenue downturn prompted this distressed sale, with total income falling to $6.1 million despite a 45% increase in product sales. Gross margins also narrowed to 37.7%, down from 64.5%, as lower-margin hardware replaced more profitable licensing agreements. Sequans has pledged 817 BTC as collateral for $35.9 million in convertible notes, leaving limited flexibility in its cryptocurrency holdings.
“We have taken decisive steps to simplify and strengthen our balance sheet,” stated Sequans CEO Dr. Georges Karam.
Shares of Sequans (SQNS) dropped approximately 42% over the past six months, trading recently at $3.43 according to Yahoo Finance data. The Nasdaq-listed stock reflects growing investor doubts regarding the company’s future direction. SQNS shares have declined by 2.5% today.
This liquidation is part of a broader trend among corporate Bitcoin holders reevaluating their strategies after last year’s market surge. For instance, MARA Holdings, the largest public Bitcoin miner by BTC held, adjusted its treasury policy in 2026 to enable selling reserves following a $422.2 million fair value loss on its holdings from the previous year. The company has started selling its Bitcoin and implementing layoffs. Other miners like Riot Platforms, Hut 8, and Cango have also reduced their BTC holdings.
In March, publicly traded Bitcoin firm Nakamoto Holdings sold part of its reserves as its share price hit a new low. Similarly, South Korean entertainment group K Wave Media recently redirected $485 million from a planned Bitcoin investment to AI infrastructure development.
Sequans initiated its Bitcoin accumulation in July 2025 under a diversification strategy described by CEO Karam as a “long-term store of value for shareholders.” Last August, the company outlined plans to sell up to $200 million worth of shares for further Bitcoin purchases. The recent sale is Sequans’ second major liquidation within six months; previously, it sold 970 BTC in November 2025 to redeem convertible debt.
Bitcoin’s price dropped to near $60,000 early this year after peaking at over $126,000 last October but has since recovered slightly, reaching above $81,000 for the first time since January. On Myriad, a prediction market by Decrypt’s parent company, users predict an 86% chance that Bitcoin will rise to $84,000 rather than fall to $55,000—a belief that has grown by 16% over the past week.
Sequans’ remaining debt is due June 1, after which all Bitcoin holdings will be unrestricted and available for liquidation.