The quarterly damage included $29.3 million in unrealized Bitcoin impairment losses and $11.7 million in realized losses from the asset sales, according to financial filings.
Revenue deterioration drove the distressed sale, with total income dropping to $6.1 million despite a 45% jump in product sales. Gross margins compressed to 37.7% from 64.5% as lower-margin hardware displaced lucrative licensing deals. The company has pledged 817 of its remaining Bitcoin as collateral for $35.9 million in outstanding convertible notes, leaving minimal flexibility in its crypto treasury.
"We have taken decisive steps to simplify and strengthen our balance sheet," said Sequans CEO Dr. Georges Karam, in a statement.
Sequans (SQNS) shares have fallen about 42% over the last six months to recently trade at $3.43, per data from Yahoo Finance, with the Nasdaq-listed stock reflecting deepening investor skepticism about the company's trajectory. SQNS shares are down 2.5% on the day.
The latest sale marks the second major liquidation in six months. 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. Karam characterized that transaction as a "tactical decision" at the time.
The chipmaker's remaining debt matures June 1, after which all Bitcoin holdings become unrestricted and available for potential liquidation.
Bitcoin plunged in price earlier this year, falling close to $60,000 after peaking above $126,000 last October. It has ticked up since those recent lows, however, topping the $81,000 mark early Tuesday for the first time since January.
