Bitcoin Depot Seeks Chapter 11 Protection, Takes 9,276 Bitcoin ATMs Offline
Bitcoin Depot, formerly the largest bitcoin ATM operator in North America, has filed for Chapter 11 bankruptcy and is winding down after shutting down its entire kiosk network.
The Atlanta-based company said it voluntarily filed Monday in the U.S. Bankruptcy Court for the Southern District of Texas and plans to sell assets through an orderly, court-supervised process.
At its peak last year, Bitcoin Depot operated 9,276 kiosks across the U.S., Canada and Australia, allowing customers to convert cash into bitcoin at retail locations. The company listed on Nasdaq in 2023.
Early first-quarter figures pointed to a sharp deterioration. Revenue fell 49% year over year, the company swung from a $12.2 million profit to a $9.5 million loss, and gross profit dropped 85% to $4.5 million.
CEO Alex Holmes attributed much of the pressure to a tougher regulatory landscape, citing stricter state compliance requirements, new transaction limits, and, in some jurisdictions, outright restrictions or bans on bitcoin ATM operations. "These developments have materially affected Bitcoin Depot's business and financial position. Under these circumstances, the Company's current business model is unsustainable," Holmes said.
The company is also facing legal headwinds. Attorneys general in Massachusetts and Iowa are leading a high-profile lawsuit alleging Bitcoin Depot facilitated crypto scams.
Regulatory and law-enforcement scrutiny has been intensifying across the crypto ATM sector, after losses tied to crypto ATM fraud hit a record $389 million last year, up 58% from the prior year.
Bitcoin Depot's Canadian entities are included in the U.S. proceeding, while other non-U.S. operations will be wound down under local laws.
The bankruptcy arrives as the broader crypto market sees rising institutional participation through ETFs and what has been described as recent progress on the Clarity Act, highlighting a split between stress in retail crypto infrastructure and growing institutional adoption.
