Bitcoin Depot Files Chapter 11 and Shuts Down 9,000 Bitcoin ATMs

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Bitcoin Depot, the largest Bitcoin ATM operator in North America, has filed for Chapter 11 bankruptcy and shut down its entire kiosk network. The Nasdaq-listed company filed voluntarily in the U.S. Bankruptcy Court for the Southern District of Texas on Monday, saying it will wind down operations and sell its assets through a court-supervised process.

CEO Says Regulatory Shifts Made the Model “Unsustainable”

Chief executive Alex Holmes blamed the collapse on a regulatory environment that shifted faster than the company could adapt. States imposed tighter compliance rules, lower transaction limits, and in some cases outright restrictions on Bitcoin ATM operations. Litigation and enforcement actions compounded the pressure.

“The regulatory environment for BTM operators has shifted significantly. […] These developments have materially affected Bitcoin Depot’s business and financial position. Under these circumstances, the Company’s current business model is unsustainable,” Holmes said in the company’s press release.

Holmes said Bitcoin Depot had strengthened its fraud prevention systems over time, including enhanced identity verification, customer fraud warnings, and lower transaction limits. None of it was enough to offset the regulatory headwinds.

Revenue Collapsed 49% in the First Quarter

The bankruptcy follows a steep financial deterioration. Preliminary first-quarter results showed revenue fell 49.2% year over year to roughly $80.7 million. The company swung from a $12.2 million profit a year earlier to a $9.5 million net loss. Gross profit dropped 85% to $4.5 million.

The company also disclosed a $3.7 million loss tied to an April cyberattack on its IT systems. It reported more than $20 million in legal judgments and ongoing litigation across several states.

Last week, Bitcoin Depot said it could not deliver its Q1 results on time due to a material weakness in cash-in-transit reconciliation. The company had already issued a going concern warning before the bankruptcy filing.

State Enforcement Actions Accelerated the Collapse

Bitcoin Depot’s path to bankruptcy followed a cascading series of state-level enforcement actions. Connecticut suspended the company’s money transmission license in March 2026, citing more than 1,000 transactions where fees exceeded the state’s 15% cap, incomplete refunds to fraud victims, and disclosure failures.

Following the suspension, the company appointed Holmes as CEO, with the projection that core revenue would fall 30% to 40% by 2026.

The company also faces a lawsuit from the attorneys general of Massachusetts and Iowa over allegations that it facilitated crypto scams. Crypto ATM fraud hit a record $389 million in reported losses last year, a 58% increase from 2024.

The 9,000-Kiosk Network Goes Dark

At its peak, Bitcoin Depot operated more than 9,000 kiosks across the United States, Canada, and Australia, allowing customers to convert cash into Bitcoin at retail locations. The company went public on Nasdaq in 2023.

The entire network has been taken offline. Canadian entities are included in the U.S. court-supervised process, with restructuring proceedings expected to begin in Canada. Other non-U.S. entities will wind down under applicable local law.

Vinson & Elkins is serving as legal advisor. Portage Point Partners is the restructuring advisor. Kroll Restructuring Administration is acting as claims agent. Court filings and case information are available at restructuring.ra.kroll.com/bitcoindepot .