Sequans Communications, a French company that adopted bitcoin (BTC) as a treasury asset following the model of Michael Saylor (founder of Strategy), has sold more than 2,000 BTC.
The company presented its financial results for the first quarter of 2026 today, May 5, in which he revealed that its holdings were reduced to 1,114 BTC. This represents the sale of 2,120 BTC since the liquidation of its coins began in November of last year.
Although Sequans accumulated a maximum of 3,234 BTC, the sharp drop in its operating income forced it to divest part of its digital assets. The company reported preliminary unaudited revenue of just $6.1 million for the quarter, down 12% from the prior quarter and down 24% from the same period in 2025.
This operational weakness translated into losses of 50 million dollars in the first three months of the year. Of that figure, 29 million correspond to charges for impairment of their bitcoin holdings—accounting losses due to the drop in price without having sold—while another 11 million reflect losses made from actual sales. Faced with this pressure, the company prioritized liquidity over its long-term strategy with bitcoin.
Of the 1,114 BTC it still holds, 817 are pledged (or collateralized) as collateral for the remaining $35.9 million of convertible debt. According to the report itself, this debt will be amortized before June 1, 2026, from which time The remaining bitcoin will be free of restrictions and available for sale.
The massive liquidation occurred in a context of strong volatility in the price of bitcoin, which hit an all-time high of $126,000 in October 2025 and then plummeted more than 50% and reached $60,000 in February 2026. Now its price is around $81,000. This fall aggravated the financial situation of Sequans, which had adopted the “Michael Saylor strategy” of bitcoin accumulation in June 2025, as reported by CriptoNoticias.
The impact is also visible in the stock market. Its shares have fallen 81% in the last year. After the initial announcement of its commitment to bitcoin, the titles reached close to $50, but They subsequently resumed their downward trend and are currently trading near $3.5.
The Sequans case reopens the debate on the real viability of corporate treasury strategies in bitcoin, which are often presented as a “universal recipe.”
While companies like Strategy have increased their positions even in adverse environments, Sequans has been forced to sell due to structural operational problems. Furthermore, the high percentage of collateralized BTC adds an additional risk: a new price drop could seriously complicate your financial position.
Ultimately, Sequans went from being a pioneering example of bitcoin adoption in Europe to illustrating the vulnerabilities of this strategy when the underlying business does not generate sufficient cash flow. Although it still maintains a relevant position in BTC, the sales executed and the high percentage of coins in collateral make it clear that, for now, its priority is operational survival and debt management, rather than the accumulation of bitcoin.