France: Sequans urgently liquidates half of its Bitcoin to face $35.9M in debt

The crypto market sometimes resembles a vast pool where swimmers, some elegant and serene, others in distress, struggle against the current. Some companies know how to capitalize on the wave, while others are swallowed by colossal debts and fragile portfolio management. Sequans Communications, a French player in the semiconductor sector, is a striking example: faced with a drop in revenue and growing losses, it liquidated nearly half of its bitcoin reserves. A radical but necessary decision.

Emergency liquidation: Sequans sells 1,025 Bitcoin to save its cash flow

Sequans, a giant in semiconductors for IoT, faced an alarming situation in Q1 2026. With losses exceeding $50 million and a revenue drop of 24.8%, the company made the drastic decision to sell a large portion of its bitcoin reserves. Within a few months, the company halved its cryptocurrency portfolio, dropping from 2,139 BTC to 1,114 BTC.

The sale generated vital liquidity, although the process led to significant losses, notably $29.3 million in unrealized impairment and $11.7 million in sales losses. This decision fits into a broader trend: corporate crypto reserve management is becoming increasingly delicate.

Sequans CEO, Dr. Georges Karam, emphasized: 

We have taken decisive steps to simplify and strengthen our balance sheet.

The difficulties faced by Sequans are not an isolated case. Other companies that invested in bitcoin, attracted by its potential as a store of value, are now reselling part of their assets to meet urgent financing needs. 

The problem is simple: crypto market volatility makes BTC reserves increasingly risky in the long term.

A risky bet on crypto: the scale of losses at Sequans

At the beginning of the year, Sequans had bet on accumulating bitcoin, convinced that this cryptocurrency would be a strategic long-term store of value. This strategy, started in 2025, is now being questioned. With a net loss of $54.3 million and a $29.3 million depreciation linked to BTC, the company must reevaluate its business model.

The problem: selling its bitcoins only exacerbates short-term financial problems. Furthermore, the volatility of crypto assets no longer allows relying on them to diversify the company’s assets.

The semiconductor market is also hit by margin decreases, dropping from 64.5% to 37.7%. The lack of revenue diversification, with too much reliance on hardware, makes Sequans vulnerable to growing competition, especially in the 5G sector. 

One problem persists: the fragility of the business model against cryptocurrency fluctuations and product failures.

The sale of our Bitcoin represents a decisive step in our strategy. We must be realistic about the challenges 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 heavily in cryptocurrencies. Other giants like Mara Holdings, or even large entertainment companies like K Wave Media, have also started adjusting their portfolios. In a context where digital assets no longer provide the hoped-for stability, many wonder if these strategies are still viable long-term.

Bitcoin, though still popular, has experienced many twists over recent months, with price fluctuations that have strained the financial solidity of companies 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 the time of writing: $81,586;
• Sequans liquidated 1,025 BTC, about $85 million;
• Bitcoin sale generated more than $50 million to reduce debt;
• Net loss for Q1 2026: $54.3 million.

Sequans’ difficulties are not only affecting Europe; they mark a global trend where players like Strategy pause their bitcoin purchases to focus on safer strategies. While waiting to emerge from this delicate period, the crypto market appears to be an unstable lever for the majority of companies facing losses and debts.