U.S.-listed Bitcoin ATM operator Bitcoin Depot has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas. The company disclosed its intention to wind down all operations and proceed with the sale of its assets. Headquartered in Atlanta, the company was once one of the largest Bitcoin ATM operators in North America.
After the announcement, Bitcoin Depot's stock price dropped from approximately $3 to around $0.75, a single-day decline of about 80%. Following the filing for bankruptcy, the company has taken down all of its Bitcoin ATMs. According to its disclosed data as of August 2025, the company was operating over 9,000 terminals globally, covering 47 U.S. states, and offering retail cash-to-bitcoin purchase services in 31 states.
The company has shut down all terminals.
CEO Alex Holmes said the business model is unsustainable, primarily due to a significantly tighter regulatory environment. Recently, multiple states have raised compliance requirements, including introducing new transaction limits, while some regions have directly restricted or banned Bitcoin ATM operations.
In March of this year, Indiana became the first state to ban Bitcoin ATM terminals, followed by similar actions in Tennessee and Minnesota. During the same period, Connecticut suspended Bitcoin Depot’s operating license.
Fraud complaints continue to rise
Amid growing regulatory tightening, U.S. concerns over crypto ATM fraud continue to rise. Federal Bureau of Investigation data shows that in 2025, there were 13,460 fraud complaints related to crypto ATMs, with reported losses totaling $389 million—an increase of 58% from the previous year.
This trend directly impacts operators reliant on offline terminals for customer acquisition. As state-level restrictions expand, compliance costs and operational risks rise simultaneously, causing the industry’s previous expansion model to become ineffective.
Q1 performance declined significantly
Before filing for bankruptcy, Bitcoin Depot disclosed financial and internal control issues. On May 12, the company filed a notice of delayed filing with the U.S. Securities and Exchange Commission, stating that it could not submit its Q1 2026 Form 10-Q on time due to significant deficiencies in its cash reconciliation process. The filing also included a warning about substantial doubt regarding the company’s ability to continue as a going concern.
The company's preliminary financial results show that revenue for the quarter ended March 31, 2026, was approximately $83.5 million, a decrease of $80.7 million, or 49.2%, compared to the same period last year. Gross profit declined from $31.2 million in the prior-year period to $4.5 million, and net income shifted from a profit of $12.2 million in the same period last year to a loss of $9.5 million.
- Cash at the end of the period decreased from $65.6 million to $44 million.
- Operating expenses increased by 32.3% year-over-year.
- Accrued over $20 million in legal fees in the fourth quarter of 2025.
Multi-state litigation continues to apply pressure
In addition to state-level regulatory restrictions, the company faces lawsuits from multiple law enforcement agencies. In February 2026, Massachusetts Attorney General Andrea Campbell sued Bitcoin Depot, alleging that it facilitated consumer-oriented cryptocurrency scams. The Iowa Attorney General also raised similar claims, asserting that the company’s pricing was misleading and that it failed to prevent known fraudulent transactions from continuing.
Additional information: In the delayed filing submitted on May 12, the company disclosed a material weakness in internal controls related to cash-in-transit reconciliation and issued, for the first time, a warning regarding substantial doubt about its ability to continue as a going concern.