Paris-based Sequans Communications saw its stock collapse 51 percent after the IoT chipmaker sold 1,025 bitcoin to cover mounting losses from a failed crypto treasury strategy, reporting a 24.8 percent decline in quarterly revenue.
"We have taken decisive steps to simplify and strengthen our balance sheet," said Sequans CEO Dr. Georges Karam, in a statement that confirmed the sharp reversal from the company's previous plan to accumulate bitcoin as a treasury asset.
The sale reduced Sequans’ bitcoin holdings to 1,114 BTC from 2,139 BTC at the end of 2025, according to its first-quarter report. The company booked an operating loss of $50.5 million, which included $29.3 million in unrealized impairment charges on its remaining bitcoin and $11.7 million in realized losses from the sale. Revenue for the quarter ended March 31 fell to $6.1 million, down from $8.1 million a year earlier, while net loss ballooned to $54.3 million from $7.3 million in the prior-year period.
The bitcoin liquidation marks a significant retreat from a strategy that began in July 2025, when Karam announced plans to acquire 3,000 BTC as a “long-term store of value for our shareholders.” The company sold 970 BTC in November 2025 to redeem convertible debt, a move Karam described at the time as a “tactical decision.” The proceeds from the most recent sale were also used to redeem debt and fund an ADS buyback program. Of the remaining 1,114 BTC, 817 are pledged as collateral for $35.9 million in convertible notes due June 1, 2026.
Sequans is not alone in reversing its corporate crypto strategy. Bitcoin miner MARA Holdings amended its treasury policy to permit selling reserves, while other miners like Riot Platforms and Hut 8 have also sold holdings. The trend extends beyond miners, with South Korean firm K Wave Media recently diverting $485 million earmarked for bitcoin purchases toward AI infrastructure instead.
The core business at Sequans also showed signs of pressure. While product sales rose 45 percent year-over-year, the company’s gross margin compressed to 37.7 percent from 64.5 percent as high-margin licensing revenue from a deal with Qualcomm, which was present in the prior-year quarter, did not recur. Shares of Sequans closed at $3.01 on Tuesday.
This article is for informational purposes only and does not constitute investment advice.
