Bitcoin Depot Inc. is facing mounting legal and financial pressure after its Canadian subsidiary, BitAccess, was hit with an $18.47 million arbitration award issued by the Canadian Arbitration Association. The ruling, disclosed in a Form 8-K filing, follows hearings held between December 2024 and October 2025 and centers on allegations that faulty hardware and software from BitAccess crippled thousands of Bitcoin ATMs operated by Cash Cloud, leading to severe financial losses.
Cash Cloud, which filed for Chapter 11 bankruptcy in 2023 with over $153.9 million in liabilities, initiated arbitration in August 2022, accusing BitAccess of breaching a 2020 Master Purchase Agreement. Arbitrators concluded that Cash Cloud proved the full extent of its damages, awarding the entire claim. Bitcoin Depot stated that BitAccess intends to challenge the award and seek to have it set aside, though the company acknowledged it cannot predict the outcome with certainty.
In a parallel legal battle, Cash Cloud has filed a lawsuit in the U.S. Bankruptcy Court for the District of Nevada, seeking the same $18.47 million in damages and arguing that certain claims fall outside the Canadian tribunal's jurisdiction. Bitcoin Depot plans to vigorously defend both cases, calling the U.S. action without merit and noting substantial overlap with the arbitration.
Amid the legal disputes, Bitcoin Depot's financial performance showed mixed signals in Q3 2025. Revenue rose 20% year-over-year to $162.5 million, and net income jumped 139% to $5.5 million, but both metrics declined from the previous quarter—revenue fell about 6% and net income dropped roughly 55%. Earnings per share were $0.08, down from $0.16 in Q2. The company operates over 9,000 Bitcoin ATMs across the U.S., Canada, and Australia.
