Bitcoin Depot, North America’s largest bitcoin ATM operator and a Nasdaq-listed firm, has filed for Chapter 11 bankruptcy and is winding down its business.
The Atlanta-based company submitted a voluntary filing in the U.S. Bankruptcy Court for the Southern District of Texas on Monday, outlining plans to cease operations and liquidate assets through a court-supervised process. Its entire network of bitcoin ATMs has already been taken offline.
At its peak last year, Bitcoin Depot operated 9,276 kiosks across the U.S., Canada, and Australia, enabling users to convert cash into bitcoin at retail locations. The company went public on Nasdaq in 2023.
Financial strain had been mounting. Preliminary first-quarter results revealed a 49% year-over-year drop in revenue, alongside a reversal from a $12.2 million profit to a $9.5 million loss. Gross profit also plunged 85% to $4.5 million, underscoring the severity of the downturn.
CEO Alex Holmes pointed to tightening regulatory conditions as a key factor behind the company’s decline. Increasing compliance requirements, transaction limits, and in some cases outright bans on bitcoin ATM operations have weighed heavily on the business. He also cited rising litigation and enforcement actions as additional pressures, calling the company’s existing model “unsustainable” under current conditions.
Bitcoin Depot is also contending with a major lawsuit led by attorneys general in Massachusetts and Iowa, alleging that its machines facilitated crypto-related scams. Fraud tied to crypto ATMs reached a record $389 million in reported losses last year, a 58% increase from 2024, intensifying scrutiny from regulators.
The bankruptcy proceedings include the company’s Canadian entities, while other international operations will be wound down בהתאם to local legal frameworks.
The collapse comes despite broader momentum in the crypto sector, where institutional adoption has accelerated through investment vehicles such as ETFs and ongoing legislative developments like the Clarity Act.
