Bitcoin Depot, formerly the largest bitcoin ATM operator in North America and a Nasdaq-listed company, has filed for Chapter 11 bankruptcy as it moves to shut down its business.
The Atlanta-based firm submitted a voluntary petition in the U.S. Bankruptcy Court for the Southern District of Texas on Monday, outlining a plan to wind down operations and liquidate assets through a court-supervised process. Its entire ATM network has already been taken offline.
At its peak in 2024, Bitcoin Depot operated more than 9,200 kiosks across the U.S., Canada, and Australia, enabling users to purchase bitcoin with cash at retail locations. The company went public in 2023, marking a rapid expansion phase that has since reversed.
Financial performance deteriorated sharply in recent months. Preliminary first-quarter results showed revenue falling 49% year-over-year, while the firm swung from a $12.2 million profit to a $9.5 million loss. Gross profit also declined steeply, dropping 85% to $4.5 million.
CEO Alex Holmes cited mounting regulatory pressure as a primary driver of the company’s collapse. He pointed to stricter compliance rules, transaction limits, and in some jurisdictions outright bans on bitcoin ATMs. Increased legal challenges and enforcement actions have further strained operations, leaving the company’s business model unsustainable, he said.
Bitcoin Depot is also facing a significant lawsuit from attorneys general in Massachusetts and Iowa, who allege its kiosks were used to facilitate crypto scams. Losses linked to crypto ATM fraud reached a record $389 million last year, up 58% from 2024, intensifying regulatory scrutiny across the sector.
The bankruptcy proceedings include the company’s Canadian subsidiaries, while other international operations will be wound down in accordance with local laws.
The company’s failure comes at a time when the broader crypto market is seeing growing institutional adoption, fueled by investment vehicles such as ETFs and legislative progress like the Clarity Act.
