Bitcoin Depot (BTM), a Nasdaq-listed operator of Bitcoin ATMs, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on May 18. The company plans to wind down operations and sell its assets.
Once the largest Bitcoin ATM operator globally, Bitcoin Depot went public in 2023 via a SPAC merger, placing machines in convenience stores and gas stations across North America. Three years later, the business has run its course.
Regulatory Lawsuits and Security Breach
CEO Alex Holmes said in a statement that the regulatory environment for Bitcoin ATMs has fundamentally changed, making the current business model "unsustainable." States have imposed tighter compliance requirements, including transaction limits and stricter anti-money laundering rules, with some banning operations outright. Meanwhile, multiple state attorneys general sued Bitcoin Depot for failing to protect consumers from scams.
Compounding the trouble, the company suffered a security breach in April 2026, with hackers stealing 50.9 Bitcoin from its corporate wallet — worth about $3.7 million. Customer systems were not affected, but the incident further eroded investor confidence. Caught between regulatory pressure and security risks, Bitcoin Depot decided to shut down.
Q1 Revenue Halved
Preliminary results show Q1 2026 revenue of roughly $83.5 million, down 49.2% year-over-year, with a net loss of $9.5 million. The company had earlier issued a "going concern" warning in an SEC filing, expressing "substantial doubt" about its ability to continue for the next 12 months.
All of Bitcoin Depot's more than 9,000 Bitcoin ATMs worldwide are now offline. Its Canadian subsidiary has been placed under U.S. court supervision, while other international entities will be liquidated according to local laws.