Bitcoin Depot files for Chapter 11; shares sink 71% premarket

Bitcoin Depot, a major U.S. operator of Bitcoin ATMs, said it has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas and plans to sell its assets and wind down operations. The company said it has tightened antifraud controls in recent years, including stricter identity verification and lower transaction limits, but mounting regulatory pressure and rising compliance costs have made its business model "unsustainable." As of August 2025, Bitcoin Depot operated more than 9,000 Bitcoin ATMs, ranking among the largest crypto ATM operators in North America by market share. It has since shut down its ATM network and begun a court-supervised asset sale and liquidation process. Bitcoin Depot (NASDAQ: BTM) fell more than 71% in premarket trading on the news. Since listing on Nasdaq in 2023, the stock is down nearly 95% cumulatively. Industry sources said tighter oversight in the U.S. and Canada of cash-to-cryptocurrency services—including higher consumer-protection standards, stronger antifraud obligations and stricter transaction-monitoring requirements—is squeezing profitability across the crypto ATM sector.