French Chipmaker Sequans Dumps Half Its Bitcoin as Treasury Hype Meets Actuality – Decrypt

Paris-based chipmaker Sequans Communications liquidated 1,025 Bitcoin in the course of the first quarter of 2026, practically halving its crypto reserves as income collapsed and losses mounted.

The semiconductor producer’s Bitcoin holdings fell from 2,139 BTC at year-end 2025 to 1,114 BTC by April’s shut, based on a Q1 earnings report, with the sale producing vital liquidity as the corporate posted a $54.3 million web loss—or $3.73 per diluted ADS—in comparison with $7.3 million a yr earlier.

The quarterly harm included $29.3 million in unrealized Bitcoin impairment losses and $11.7 million in realized losses from the asset gross sales, based on monetary filings.

Income deterioration drove the distressed sale, with whole revenue dropping to $6.1 million regardless of a forty five% leap in product gross sales. Gross margins compressed to 37.7% from 64.5% as lower-margin {hardware} displaced profitable licensing offers. The corporate has pledged 817 of its remaining Bitcoin as collateral for $35.9 million in excellent convertible notes, leaving minimal flexibility in its crypto treasury.

“We have now taken decisive steps to simplify and strengthen our steadiness sheet,” stated Sequans CEO Dr. Georges Karam, in an announcement.

Sequans (SQNS) shares have fallen about 42% over the past six months to not too long ago commerce at $3.43, per information from Yahoo Finance, with the Nasdaq-listed inventory reflecting deepening investor skepticism in regards to the firm’s trajectory. SQNS shares are down 2.5% on the day.

The compelled liquidation mirrors strain throughout company Bitcoin holders, with some corporations rethinking their plans after a rush in the direction of crypto treasuries amid final yr’s market increase, whereas different longer-running Bitcoin holders have lessened their publicity amid enterprise challenges.

MARA Holdings, the biggest public Bitcoin miner by BTC held, expanded its treasury coverage in 2026 to allow promoting amassed reserves after recording a $422.2 million honest worth lower on its 53,822 BTC holdings final yr. The miner has began promoting its holdings alongside a latest spherical of layoffs. Different Bitcoin mining companies which have offered off BTC holdings in latest months embrace Riot Platforms, Hut 8, and Cango.

Publicly traded Bitcoin treasury agency Nakamoto Holdings stated in March that it offered off a part of its BTC holdings as its share value hit a brand new low. Simply this week, South Korean leisure agency Ok Wave Media stated it might divert $485 million in funding earmarked for its Bitcoin treasury technique to as a substitute pivot in the direction of AI infrastructure.

Sequans started accumulating Bitcoin in July 2025 as a part of a treasury diversification technique that Karam as soon as positioned as a “long-term retailer of worth for our shareholders.” Final August, it revealed a plan to promote as much as $200 million price of shares to gas Bitcoin buys.

The newest sale marks the second main liquidation in six months. Sequans beforehand offered 970 BTC in November 2025, decreasing holdings from 3,234 to 2,264 Bitcoin to redeem $94.5 million in convertible debt. Karam characterised that transaction as a “tactical determination” on the time.

The chipmaker’s remaining debt matures June 1, after which all Bitcoin holdings turn out to be unrestricted and out there for potential liquidation.

Bitcoin plunged in value earlier this yr, falling near $60,000 after peaking above $126,000 final October. It has ticked up since these latest lows, nonetheless, topping the $81,000 mark early Tuesday for the primary time since January.

Customers on Myriad—a prediction market platform operated by Decrypt‘s father or mother firm, Dastan—consider that Bitcoin will proceed to rise, penciling a roughly 86% probability that its subsequent cease is an increase to $84,000 somewhat than a drop to $55,000. These odds have improved 16% over the past week.