Bitcoin Depot, the Nasdaq-listed company that once ran the largest bitcoin ATM network in North America, has filed for Chapter 11 bankruptcy protection and is winding down. The Atlanta-based firm said in a voluntary filing with the U.S. Bankruptcy Court for the Southern District of Texas on Monday that it will shut operations and sell assets through an orderly, court-supervised process. Its entire ATM network has already been taken offline.
The company had built a large retail footprint across the U.S., Canada, and Australia, letting customers convert cash into bitcoin through physical kiosks. At one point last year, it operated 9,276 kiosks. Bitcoin Depot went public on Nasdaq in 2023, but the business has since moved into a court-managed wind-down.
Revenue and profit reversal hit the business
The financial deterioration was already visible in its preliminary first-quarter results. Revenue fell 49% from a year earlier. Over the same period, the company moved from a $12.2 million profit to a $9.5 million loss. Gross profit dropped 85% to $4.5 million, showing how sharply operating conditions had worsened.
Bitcoin Depot pointed to tightening regulation as a key reason for the decline. In a press release, CEO Alex Holmes said states had imposed stricter compliance requirements, including new transaction limits, while some jurisdictions had introduced restrictions or outright bans on bitcoin ATM operations. He also said operators were facing growing litigation and regulatory enforcement. Holmes added that these developments had materially affected the company’s business and financial position and left its current model unsustainable.
Lawsuits add to pressure on crypto ATM operators
The company is also dealing with a prominent lawsuit led by the attorneys general of Massachusetts and Iowa over allegations that it facilitated crypto scams. Scrutiny of crypto ATMs has been rising as fraud losses increase. According to the source material, reported losses tied to crypto ATM fraud reached a record $389 million last year, up 58% from 2024, drawing more attention from regulators and prosecutors.
Bitcoin Depot’s Canadian entities are included in the U.S. court-supervised bankruptcy process. Other entities outside the United States will wind down in line with the laws of their respective countries. The collapse comes while other parts of the crypto market are seeing stronger institutional participation through vehicles such as ETFs, along with recent progress on the Clarity Act. For operators built around cash-to-bitcoin kiosks, though, the regulatory and legal pressure has proved much harder to absorb.