Bitcoin Depot, the Nasdaq-listed Bitcoin ATM operator that once boasted more than 9,000 kiosks across North America and Australia, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The company is winding down its operations and has taken its entire Bitcoin ATM network offline, marking a dramatic fall for a firm that went public in 2023 and was once among the largest crypto ATM operators in North America.
Preliminary first-quarter results underscore the financial distress: revenue plunged 49.2% year-over-year, swinging from a $12.2 million profit to a $9.5 million net loss. Gross profit collapsed 85% to $4.5 million, while a $3.7 million loss from an April cyberattack and more than $20 million in outstanding legal judgments and litigation added to the pressure. The company also disclosed in an SEC filing (Form NT 10-Q) that it was unable to submit its Q1 2026 quarterly report on time.
CEO Alex Holmes pinned the collapse on a dramatically changed regulatory landscape. “The current business model was no longer sustainable,” Holmes said, citing tighter state-level compliance rules, lower transaction limits, outright bans in some jurisdictions, and mounting legal and enforcement costs. Despite implementing enhanced identity verification, customer fraud warnings, and reduced transaction limits, the company could not offset the rising burden.
Regulators and prosecutors have increasingly scrutinized crypto ATMs because fraud victims are often directed to deposit cash into them, with reported fraud losses hitting $389 million last year—up 58% from 2024. Bitcoin Depot itself faced lawsuits from the attorneys general of Massachusetts and Iowa over claims its kiosks facilitated scams, further straining its finances.
The shutdown removes a major on-ramp for cash-preferring and unbanked Bitcoin buyers, narrowing physical access points even as Wall Street expands institutional crypto products like spot ETFs. While competitors such as CoinFlip and Bitcoin of America continue to operate, Bitcoin Depot’s Chapter 11 process—structured as a wind-down rather than a restructuring—suggests the company does not intend to emerge from bankruptcy.
