Bitcoin Depot Seeks Bankruptcy Protection, Underscoring the Slide in Crypto ATMs

Bitcoin Depot Inc., once North America's largest operator of cryptocurrency ATMs, filed for bankruptcy protection on Monday, marking another setback for a segment of the digital-asset industry that has been shrinking for years, CoinDesk reported. CEO Alex Holmes said the company's business model had become "unsustainable," adding that Bitcoin Depot will begin selling assets and wind down operations. The firm has taken offline its network of thousands of "BTM" terminals that enabled customers to buy, sell, send and receive bitcoin. Founded in 2016, Bitcoin Depot grew rapidly during the crypto boom as consumers sought simple ways to convert cash into digital assets. In recent years, the company has struggled as demand weakened following the 2022 collapse of crypto exchange FTX. The market has remained lethargic, while tighter regulation has weighed on ATM operators; some U.S. states have banned crypto ATMs outright amid concerns the cash-based machines can be used for illicit activity. Holmes cited "increased litigation and regulatory enforcement" as the main drivers behind the bankruptcy filing. While crypto prices briefly rebounded during Trump's second term, that uptick failed to revive traffic at bitcoin ATMs in locations such as gas stations, convenience stores and nightclubs. The market then turned lower again in October, with bitcoin dropping about 40% from its all-time high. In a statement Monday, Bitcoin Depot said it filed in the U.S. Bankruptcy Court for the Southern District of Texas. Its Canadian entity is also included in the proceedings under the U.S. court's oversight. CoinATM Radar, which tracks the sector, lists other bitcoin ATM providers including CoinFlip, Athena Bitcoin, Bitstop and RockItCoin.