Sequans Communications posted preliminary second-quarter revenue of $7.5 million, topping its outlook as product sales climbed sharply and helped drive 23% sequential revenue growth in its cellular IoT semiconductor business, according to a Tuesday statement.

The company reported a net loss of $9.8 million and an operating loss of $7.2 million, both improving substantially from the prior quarter following lower Bitcoin-related impairment charges and the redemption of its convertible debt.

Sequans continued trimming its Bitcoin holdings during the quarter, selling another 344 BTC after a 456 BTC sale in May. It announced in May that it would exit its Bitcoin treasury strategy and dispose of its remaining Bitcoins.

The French semiconductor company ended the period with 314 BTC, $21 million in cash, and a debt-free balance sheet, which the company said strengthens its financial position as it expands its IoT semiconductor operations.

CEO Georges Karam said the company now has more than 40 production design wins, a backlog stretching into 2027 and growing momentum in defense applications after securing its first drone customer.