Sequans sold 1,025 bitcoin during the first quarter of 2026, cutting its holdings by nearly half. The move came as the company reported a $54.3 million net loss, more than seven times the previous year's deficit.
Convertible Debt Deadline Looms
The company faces a June 1, 2026 redemption date for $35.9 million in convertible notes. Eighty-one percent of its remaining 1,114 BTC is now pledged as collateral against this debt. Once redeemed, all bitcoin holdings will become unrestricted. The timing isn't great with the deadline just weeks away.
Losses Driven by Bitcoin Writedowns
Operating losses hit $50.5 million this quarter. Over half came from $29.3 million in unrealized bitcoin impairment charges and $11.7 million in realized losses from the BTC sales. Revenue fell 24.8% to $6.1 million compared to last year's first quarter. Product sales rose but gross margins shrank to 37.7% from 64.5% due to a shift toward lower-margin hardware.
Investors Keep Running
Sequans shares dropped 51.5% over the past six months to $3.01. The slide reflects deep skepticism about the company's bitcoin strategy and core business performance. It now ranks 40th among publicly traded bitcoin holders, holding a tiny fraction compared to market leaders like Strategy.
All eyes turn to June 1. That's when the convertible debt comes due and the pledged bitcoin is finally free. The company must cover the redemption or face serious consequences.
