Sequans Communications sharply reduced its Bitcoin treasury in the second quarter, selling 1,200 BTC and ending June with 314 coins on its balance sheet. The France-based chipmaker said the move was tied to clearing its convertible debt and redirecting attention to its core Internet of Things semiconductor business.

At the end of March, Sequans held 1,514 BTC valued at $103.2 million. By June 30, that position had fallen to 314 BTC worth $18.4 million. The company said the quarter’s sales produced a realized net gain of $5.3 million, a turnaround from the $11.7 million loss it recorded in the first quarter.

Treasury reduction and debt repayment

The company described the Bitcoin sales as part of a broader effort to clean up its capital structure. Chief executive Georges Karam said Sequans fully redeemed its convertible debt in May, leaving the group with no debt on the books by the end of the quarter.

Sequans also reported $21 million in cash as of June 30. The reduction in its crypto holdings therefore coincided with a significant change in the balance sheet, as the company moved away from debt and toward a more conventional cash position.

Operating business shows revenue growth

While the Bitcoin position was cut, Sequans said product sales were the main driver of second-quarter performance. Revenue reached $7.5 million, up 23.2% from the first quarter.

The company added that product sales rose by more than 80% year over year. It also said more than 40 design-win projects were now in mass production, pointing to progress in its IoT business as management tries to re-center the company around semiconductor operations.

Gross margin declined to 32.9% from 37.7% in the previous quarter. Sequans attributed the drop to a greater share of lower-margin hardware in the product mix.

A broader retreat from an earlier Bitcoin strategy

Sequans first began accumulating Bitcoin in July 2025. Its holdings later climbed above 3,300 coins, and the company had set a target of 3,000 BTC to be financed through up to $200 million in share sales.

The unwind did not begin in the second quarter alone. According to the company, sales started in November 2025 when it sold Bitcoin to redeem half of its convertible debt. That was followed by another 1,025-coin sale in early 2026 before the latest 1,200-coin reduction during the second quarter.

What comes next

Management has framed the latest disposals not as a new expansion of crypto activity but as a step back toward Sequans’ original business focus. With the convertible debt fully repaid, no debt remaining, and more than 40 design-win projects in mass production, the company’s next confirmed focus is its IoT semiconductor strategy.

The source article also noted that Sequans is not alone in trimming crypto exposure. It cited MARA, Riot Platforms, Hut 8, Cango, and Strategy as companies that have reduced Bitcoin holdings, though their reasons differ. For Sequans, the confirmed near-term picture is a much smaller Bitcoin treasury and a balance sheet reset intended to support its operating business.

Source: Cryptopolitan