Once the largest Bitcoin ATM operator in North America, Bitcoin Depot filed for Chapter 11 as tighter rules hit the business.
Bitcoin Depot, once the largest Bitcoin ATM operator in North America by market share, filed for voluntary Chapter 11 bankruptcy to liquidate its operations and sell off its assets.
The Atlanta-based company said in a Monday press release, May 18, it filed in the U.S. Bankruptcy Court for the Southern District of Texas. Its network of Bitcoin ATMs has also been taken offline.
According to Alex Holmes, CEO of Bitcoin Depot, despite the increase in the number of measures put in place by the firm to prevent frauds through identification checks and warnings to customers regarding frauds, the regulatory environment in which Bitcoin ATMs operate has drastically changed. Holmes added:
“These developments have materially affected Bitcoin Depot’s business and financial position. Under these circumstances, the Company’s current business model is unsustainable.”
Read also: Canada to Ban Bitcoin ATMs Nationwide: What’s Behind the Crackdown
Bitcoin ATM Rules Tighten
The bankruptcy comes after red flags emerged earlier in May, when Bitcoin Depot announced in a late filing statement that it had “substantial doubt” regarding its ability to sustain its operations as a going concern, owing to Bitcoin ATM limitations and legal judgments exceeding $20 million for Q4 2025.
Bitcoin Depot’s stock had already started sliding before the Chapter 11 filing. Shares last traded around $2.93, down more than 40% over five trading days, with Google Finance showing a roughly 20% drop after the company’s going-concern warning.
The company also said it missed the deadline for its quarterly report because it was still sorting out accounting issues tied to cash moving through its ATM network.
Related: What Is Crypto ATM: How Bitcoin ATMs Work and Where to Find Them
According to early numbers, Q1 revenue had declined by $80.7 million, which is almost 50% compared to 2025’s figures. The company also ended up recording a loss of $9.5 million against a profit of $12.2 million.
Bitcoin Depot said its Canadian businesses are also part of the U.S. bankruptcy process for now and will likely enter a Canadian restructuring process later.
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