TL;DR:
- Sequans Communications reduced its holdings to 314 BTC at the close of Q2 2026, after selling 1,200 bitcoins during that period.
- The company fully paid off its convertible debt in May 2026 and boosted its cash balance to $21 million as of June 30.
- The firm reported a realized net gain of $5.3 million from these sales, compared to an $11.7 million loss recorded in the first quarter.
To free itself from convertible debt, French semiconductor firm Sequans offloads Bitcoin corporate reserves during the second quarter of 2026. The move was revealed on Tuesday by CEO Georges Karam, who is spearheading the company’s strategic pivot back toward its core IoT (Internet of Things) semiconductor business.
According to preliminary financial results released by the Paris-based company, Sequans held 1,514 BTC valued at $103.2 million at the end of March.
As of June 30, 2026, company records confirm that the treasury retained only 314 BTC, with an estimated market value of $18.4 million. In previous months, the treasury had been restricted by collateralization rules on its assets.
In March 2026, financial disclosures showed that 1,217 BTC—valued at $82.9 million—remained pledged as collateral against its convertible notes.
The sale of 1,200 bitcoins throughout the quarter directly reshaped the company’s balance sheet structure. The firm booked a realized net gain of $5.3 million from these transactions in Q2. This result stands in stark contrast to the $11.7 million realized loss reported in Q1 2026, when liquidations were executed in a falling market.
According to rankings published by BitcoinTreasuries.net, the firm holds the 73rd spot among public corporate Bitcoin holders. The remaining 314 BTC reserve carries an estimated value of $20 million based on recent prices.
Capital restructuring and strategic focus on IoT technology
In statements by CEO Georges Karam, the financial move is framed as an internal corporate reorganization of its capital structure. Company leadership confirmed that the full redemption of its convertible notes was finalized in May 2026.
Thanks to this process, the treasury closed Q2 2026 with $21 million in cash. This represents a solid increase over the $10.6 million reported at the end of March 2026, while completely clearing credit obligations from its books.
Q1 2026 filings had recorded a $29.3 million unrealized impairment on its cryptocurrency positions, leading to a total net loss of $76.2 million. The preliminary Q2 report indicates that impairment narrowed down to $3.0 million.
The IoT chip business demonstrated an operational rebound during the same period. Quarterly revenue reached $7.5 million, marking a 23.2% increase compared to Q1 2026.
This figure beat internal company forecasts, despite a 8.4% year-over-year decline. Sequans noted that Q2 2025 data included one-off licensing revenue from a Qualcomm agreement. Excluding that specific factor, product sales surged 84.2% year-over-year.
According to Karam, hardware sales accounted for the vast majority of revenue, jumping over 80% compared to the previous year. The executive highlighted that more than 40 awarded projects have entered mass production, representing 55% of a projected $300 million three-year pipeline. Additionally, the firm secured its first drone sector client for its RF transceiver technology.
Gross margin for the quarter came in at 32.9%, down from 37.7% in the prior quarter. Management attributes this shift to a higher proportion of lower-margin hardware in the overall sales mix.
In financial markets, Sequans stock (NYSE: SQNS) traded at $2.87 in pre-market action on Tuesday, representing a 17.62% jump from Monday’s close. However, the price remains well below its 52-week high of $13.90.
The massive sell-off marks a complete turn in the treasury strategy the company launched a year ago. Karam began acquiring Bitcoin in July 2025 with an initial purchase of 370 BTC, building the stack past a 3,300 BTC peak under a planned target of 3,000 coins funded by up to $200 million in share sales.
The gradual divestment started in November 2025, when the company sold around 970 BTC to redeem half of its convertible debt, followed by an additional liquidation of 1,025 BTC in Q1 2026.
Other public companies have also scaled back their crypto exposure in recent months, including firms like MARA Holdings, Riot Platforms, Hut 8, and Cango. Even Strategy reported selling 1,638 BTC for approximately $104.7 million in late July 2026 to fund dividends and build cash reserves. Sequans is set to update its audited financial statements and progress on its 40 mass-production projects at the close of Q3 2026.
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