Bitcoin Depot said it could face more than $20 million in total legal liabilities by the end of 2025, adding to the pressure on a business already dealing with tougher rules for crypto ATMs. Its Nasdaq-listed shares, trading under BTM, fell by more than 40% in just five days, sliding from $5.01 to $2.93.
SEC filing raises going-concern doubts
In a filing with the US Securities and Exchange Commission, Chief Financial Officer David Gray said new regulations that restrict or ban crypto ATMs are taking effect quickly across a range of states and cities. That shift has made the company’s operating environment much harder to manage. The filing also stated that management sees significant doubt about Bitcoin Depot’s ability to continue as a going concern.
The company recently paid $1.9 million to the Maine Bureau of Consumer Credit Protection. It is also facing threats of legal action from Massachusetts and Iowa. Local authorities have been tightening limits on crypto ATM activity as concerns about fraud linked to these machines keep building.
Revenue down $80.7 million year over year
Financial results filed with the SEC showed that revenue for the three months ended March 31 dropped by $80.7 million from a year earlier. Bitcoin Depot tied the decline to stricter regulation and heavier compliance scrutiny. Over the same period, net loss widened to $9.5 million.
The company also said lower transaction volumes are directly tied to regulatory changes and stricter compliance requirements. That combination of falling revenue, larger losses, and legal exposure has added to the pressure around the stock.
New CEO takes over as Canada weighs a ban
Bitcoin Depot appointed Alex Holmes as CEO in March. He previously spent nine years as a senior executive at MoneyGram and has experience in financial regulation and compliance. The leadership change comes at a time when the company is trying to manage legal and operational strain at the same time.
The regulatory challenge is not limited to the US. In its 2026 Spring Economic Update, the Canadian government is considering a full ban on crypto ATMs over money laundering and fraud concerns. Bitcoin Depot currently operates 220 ATMs in Canada, which means any policy shift there could hit a meaningful part of its network.