Sequans Communications, a French firm that adopted Bitcoin (BTC) as a monetary asset following the mannequin of Michael Saylor (founding father of Technique), has bought over 2,000 BTC.
The corporate introduced its monetary outcomes for the primary quarter of 2026 at present, Might fifth, and revealed that its holdings had decreased to 1,114 BTC. This equates to a sale of two,120 BTC since liquidation of the coin started final November..
Sequans gathered as much as 3,234 BTC, however was compelled to promote a few of its digital property attributable to a pointy decline in working revenue. The corporate reported preliminary unaudited income of simply $6.1 million for the quarter, down 12% from the earlier quarter and down 24% from the identical interval in 2025.
This operational weak point That's $50 million in losses within the first three months of this 12 months.. Of those, 29 million characterize impairment expenses on Bitcoin holdings (accounting losses attributable to value declines with out being bought), and the remaining 11 million replicate losses from precise gross sales. Within the face of this stress, the corporate prioritized liquidity over a long-term technique with Bitcoin.
Of the 1,114 BTC it nonetheless holds, 817 bits have been pledged (or pledged) as collateral for the remaining $35.9 million in convertible debt. In keeping with the report itself, this debt might be amortized by June 1, 2026, from which level Remaining Bitcoins haven’t any restrictions and could be bought.
This huge-scale liquidation comes amid wild fluctuations in Bitcoin costs, which hit an all-time excessive of $126,000 in October 2025 earlier than plummeting by greater than 50%, reaching $60,000 in February 2026. At present, its value is roughly $81,000. As reported by CriptoNoticias, this fall, the monetary state of affairs of Secans, which had adopted the “Michael Saylor Technique” of accumulating Bitcoin by June 2025, deteriorated.
Its affect can be mirrored within the inventory market. The corporate's inventory value fell 81% final 12 months. After first asserting its dedication to Bitcoin, the title's value reached almost $50; Since then, it has returned to a downward pattern and is at the moment buying and selling round $3.5..
The Sequans case reopens the controversy concerning the precise viability of company finance methods in Bitcoin, which are sometimes introduced as a “common recipe.”
Whereas firms like Technique thrive in adversity, Sequans Pressured to promote attributable to structural operational points. Moreover, the excessive share of collateralized BTC provides extra danger. A brand new drop in costs might significantly worsen our monetary state of affairs.
In the end, Sequans went from the pioneering instance of Bitcoin adoption in Europe to illustrating the vulnerability of this technique if the underlying enterprise doesn’t generate ample money movement. Though the corporate nonetheless maintains a superb place in BTC, the gross sales it has undertaken and the excessive share of cash in collateral make it clear that enterprise survival and debt administration are extra of a precedence than Bitcoin accumulation at this level.
