Another BTC Treasury Halves Its Stack

French chipmaker @Sequans (NYSE: $SQNS) sold 1,025 $BTC during the first quarter of 2026, nearly halving its digital asset reserves as the IoT semiconductor maker grappled with falling revenue and mounting losses.

The sale reduced Sequans' bitcoin position from 2,139 BTC at year-end 2025 to 1,114 BTC by April 30, marking the second major disposal in six months for a company that less than a year ago proclaimed plans to accumulate 3,000 bitcoin as a long-term store of value.

Financials Under Pressure

Sequans reported revenue of $6.1 million for the quarter ended March 31, down 24.8% from $8.1 million a year earlier. The net loss for the period hit $54.3 million, weighed down by $41 million in Bitcoin-related impairments and realized losses. $SQNS shares have fallen about 42% over the last six months, with the Nasdaq-listed stock reflecting deepening investor skepticism about the company's trajectory.

Sequans trimmed its bitcoin holdings by nearly half to finance convertible debt redemptions and an ADS buyback program. Of the 1,114 BTC held as of April 30, 817 bitcoin, representing 73% of current holdings, remained pledged as collateral for $35.9 million in outstanding convertible notes. The remaining debt is scheduled for redemption by June 1, 2026, after which all bitcoin will be unrestricted and available for sale.

Sequans previously sold 970 BTC in November 2025, reducing holdings from 3,234 to 2,264 bitcoin to redeem $94.5 million in convertible debt. That transaction was characterized at the time as a "tactical decision" by management.

A Wider Corporate Retreat From Bitcoin Treasuries

The forced liquidation mirrors pressure across corporate Bitcoin holders, with some companies rethinking their plans after a rush toward crypto treasuries amid last year's market boom, while other longer-running Bitcoin holders have lessened their exposure amid business challenges.

MARA Holdings, the largest public Bitcoin miner by BTC held, expanded its treasury policy in 2026 to permit selling accumulated reserves after recording a $422.2 million fair value decrease on its 53,822 BTC holdings last year, and has started selling its holdings alongside a recent round of layoffs.

The retreat is not confined to miners. K Wave Media, a Nasdaq-listed Korean media and entertainment firm, told the U.S. Securities and Exchange Commission that it is redirecting up to $485 million in remaining financing capacity away from a planned bitcoin treasury push and into AI infrastructure, including data centers, GPU compute operations and acquisitions across the AI value chain. The original $500 million facility was set up in June 2025 explicitly to buy bitcoin, part of K Wave's effort to reposition itself in capital markets at a time when bitcoin treasury announcements were doing more for share prices than the underlying businesses were. Less than a year later, that thesis has been retired in favor of a sector with newer momentum. K Wave shares fell nearly 25% on the announcement.

For Sequans, the question now is what happens after June 1. Whether the company will retain its remaining bitcoin assets or continue liquidating to fund operations remains an open question.

Sources:
Decrypt: French Chipmaker Sequans Dumps Half Its Bitcoin as Treasury Hype Meets Reality
CoinDesk: K Wave Media scraps massive bitcoin treasury plan to redirect $485 million to AI
StockTitan: Sequans Communications Q1 2026 Preliminary Results