French chipmaker Sequans Communications (NYSE: SQNS) reduced the volume of its Bitcoin bonds to 314 coins in the second quarter and wrote off convertible debt, the company reported on Tuesday, August 4. CEO Georges Karam is steering the company back to developing its semiconductor business for the Internet of Things.
According to preliminary results from the Paris-based company for the second quarter, as of the end of March it held 1514 $BTC worth $103.2 million.
How Much Bitcoin Did Sequans Communications Sell in Three Months?
According to available data, the company held 314 $BTC, which were valued at $18.4 million as of June 30. Sequans Communications had been constrained by collateral rules for several months.
In March, the company had 1217 $BTC worth $82.9 million locked as collateral for convertible bonds.
But now the company sold 1200 coins in the quarter, thus changing its calculations. The company recorded a net profit of $5.3 million from sales in the second quarter, a sharp change from the $11.7 million loss incurred in the first quarter when it offloaded coins onto a falling market.
Sequans ranks 73rd among public companies holding Bitcoin according to data from BitcoinTreasuries.net. Its 314 $BTC are now worth $20 million.
Why Did Sequans Communications Sell Its Bitcoin?
Karam shared information on the reasons for the asset sale, positioning it as capital structure optimization. Typically, a number of companies divesting their assets cite the need to sell part of the assets and refocus on another sector, with artificial intelligence and data centers becoming new priority areas. For Sequans, this meant focusing on its core IoT strategy.
Karam stated that in May they fully repaid their convertible debt and ended the quarter with $21 million in cash, compared to $10.6 million three months earlier, and with no debt on the balance sheet.
In the first quarter of 2026, Sequans had unrealized losses of $29.3 million on Bitcoin assets, leading to a net loss of $76.2 million. Losses in the second quarter were significantly smaller at $3.0 million.
Product Sales Were the Defining Factor This Quarter
The chip business, which Karam is now actively promoting, performed better in the last three months. Revenue reached $7.5 million, which is 23.2% higher than in the first quarter and exceeded the company's forecasts, although still 8.4% lower than a year ago, as the 2025 figure included one-time license fees from a deal with Qualcomm. Excluding this, revenue grew 84.2% year-over-year.
Karam said the bulk of the revenue came from product sales, which grew more than 80% compared to the previous year. He pointed to more than 40 development-approved projects now in serial production, accounting for 55% of a $300 million three-year product development plan, as well as a first customer for unmanned aerial vehicles using the company's RF transceiver technology.
Gross margin decreased to 32.9% from 37.7% in the previous quarter, which the company explained by an increase in the share of low-margin equipment in total sales.
Investors liked this information: on Tuesday in pre-market trading, SQNS shares traded at $2.87, up 17.62% from Monday's close, according to data from Google Finance, although the share price is still significantly below its 52-week high of $13.90.
From 370 Coins to Full Retreat
Sequans has now abandoned the strategy of investing in government bonds that it started just over a year ago. Karam began buying Bitcoin in July 2025 with 370 coins and gradually increased the number to a peak above 3300, previously stating a goal of 3000 coins funded by selling up to $200 million worth of shares.
The selling began in November 2025 when the company sold about 970 coins to repay half of its convertible debt. Another sale of 1025 coins followed in the first quarter of 2026.
Sequans is not the only company divesting a significant portion of its Bitcoin assets. MARA Holdings, Riot Platforms, Hut 8, and Cango, among others, have reduced their Bitcoin in recent months. Even Strategy, the largest corporate holder, sold 1638 coins for about $104.7 million at the end of July to fund dividends and replenish cash.
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