The crypto market sometimes resembles a vast swimming pool where swimmers, some elegant and serene, others in distress, fight against the current. Some companies know how to take advantage of the wave, while others find themselves swallowed up by colossal debts and fragile portfolio management. Sequans Communications, a French player in the semiconductor sector, is a striking example: faced with falling revenues and growing losses, it liquidated almost half of its reserves in bitcoin. A radical decision, but necessary.
In brief
- Sequans sells 1,025 BTC to reduce its convertible debt and finance share buybacks.
- Sequans' revenue fell 24.8%, reaching just $6.1 million.
- The sale of Bitcoin generates a net loss of $54.3 million, a depreciation of $29.3 million.
- 817 BTC are pledged to secure a loan of $35.9 million.
Emergency liquidation: Sequans sells 1,025 Bitcoin to save its cash flow
Sequans, a semiconductor giant for IoT, faced an alarming situation in the first quarter of 2026. With losses exceeding $50 million and a 24.8% revenue drop, the company made the drastic decision to sell a large portion of its bitcoin reserves. In the span of a few months, the company halved its cryptocurrency portfolio, from 2,139 BTC to 1,114 BTC.
The sale helped generate vital liquidity, although the process generated significant losses, including $29.3 million in unrealized impairment and $11.7 million in sales losses. This decision is part of a broader trend: the management of crypto reserves by companies is becoming increasingly delicate.
The CEO of Sequans, Dr. Georges Karam, underlined:
We have taken decisive steps to simplify and strengthen our balance sheet.
The difficulties encountered by Sequans are not an isolated case. Other companies that have invested in bitcoin, attracted by its potential as a store of value, are now selling part of their assets to meet urgent financing needs.
The problem is simple: the volatility of the crypto market makes BTC reserves increasingly risky in the long term.
A risky bet on crypto: the extent of the losses at Sequans
At the start of the year, Sequans bet on the accumulation of bitcoin, convinced that this cryptocurrency would be a strategic store of value in the long term. This strategy, started in 2025, is now called into question. With a net loss of $54.3 million and a $29.3 million BTC-related writedown, the company needs to reevaluate its business model.
The problem: selling his bitcoins only exacerbates his financial problems in the short term. Furthermore, the volatility of crypto-assets no longer allows them to be counted on to diversify the company's assets.
The semiconductor market is also hit by a drop in margins, falling from 64.5% to 37.7%. The lack of revenue diversification, with too much dependence on hardware, leaves Sequans vulnerable to growing competition, particularly in the 5G sector.
Only one problem persists: the fragility of the economic model in the face of fluctuations in cryptocurrencies and product failures.
The sale of our Bitcoin represents a decisive step in our strategy. We must be realistic in the face of the challenges that the market imposes on us.
Dr. Georges Karam, CEO of Sequans, source: Sequans, financial report
A bubble or a pivot for the tech industry?
The situation of Sequans raises questions about the future of technology companies that have invested massively in cryptocurrencies. Other giants like Mara Holdings, or even major entertainment companies like K Wave Media, have also started adjusting their portfolios. In a context where digital assets no longer provide the stability hoped for, many wonder if these strategies are still viable in the long term.
Bitcoin, although still popular, has seen many twists and turns in recent months, with price fluctuations that have undermined the financial strength of companies that have invested in it.
While selling bitcoin may be a short-term solution, it raises questions about how companies will manage these volatile assets in the future. The search for some financial security through cryptocurrencies no longer seems as reliable as before.
Key figures:
- Bitcoin price at time of writing: $81,586;
- Sequans liquidated 1,025 BTC, representing approximately $85 million;
- Bitcoin sale generated over $50 million to reduce debt;
- Net loss for Q1 2026: $54.3 million.
Sequans' difficulties don't just have European repercussions: they mark a global trend where players like Strategy are halting their bitcoin purchases to focus on safer strategies. While waiting for the end of this delicate period, the crypto market seems to be too unstable a lever for the majority of companies facing losses and debts.
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