French Chipmaker Sequans Halves Bitcoin Holdings Amid Net Losses

French semiconductor firm Sequans Communications has significantly reduced its exposure to the digital asset market during the first quarter of 2026. According to recent financial filings, the company liquidated 1,025 Bitcoin, effectively halving its treasury holdings compared to the end of the previous fiscal year. This strategic move comes as the chipmaker faces widening operating losses and downward pressure on its equity valuation.

Financial Performance and Asset Liquidation

The reduction in digital asset reserves follows a challenging financial period for the Paris-based company. Sequans reported a net loss of $25.3 million for the first quarter, with operating losses expanding to $18.5 million, up from $12.3 million in the same period last year. The fiscal reports highlight the impact of market volatility on the company's balance sheet through several key figures:

• The sale of 1,025 BTC reduced holdings from 2,139 tokens at year-end 2025 to 1,114 tokens by late April 2026.
• Financial losses included $11.3 million in unrealized Bitcoin impairment charges.
• The company realized $4.7 million in losses directly from the sale of the assets.

Unrealized impairment losses occur when the market price of a held asset drops below its purchase price, requiring a downward adjustment on financial statements even if the asset is not sold.

Shift in Treasury Strategy

Sequans initially began accumulating the Bitcoin (BTC) cryptocurrency in July 2025. At the time of its initial acquisition, management characterized the blockchain-based asset as a “long-term store of value for shareholders.” However, the recent liquidations suggest a shift toward prioritizing liquidity and debt management over long-term holding.

Beyond the outright sales, Sequans has utilized its remaining digital reserves for financing purposes. The company has pledged 817 Bitcoin as collateral to secure $40.9 million in convertible notes. This move allows the firm to access capital while maintaining its remaining exposure to the Bitcoin network, though it introduces risks associated with potential margin calls if the asset price declines further.

The company’s financial struggles have been reflected in its market performance. Sequans' stock price has experienced a significant downturn, falling approximately 42% over the past six months. As the semiconductor industry continues to navigate supply chain and demand shifts, the firm’s decision to liquidate nearly half of its cryptocurrency reserves underscores the challenges of using volatile digital assets as primary corporate treasury reserves during periods of operational difficulty.