US crypto ATM operator Bitcoin Depot files for Chapter 11 to wind down business

Nasdaq-listed bitcoin ATM operator Bitcoin Depot (BTM) announced Monday that it has filed for a Chapter 11 bankruptcy in the Southern District of Texas to close down operations.

In a press release, Bitcoin Depot said that the changing regulatory environment has made it difficult for the company to continue pursuing business.

"The regulatory environment for BTM operators has shifted significantly: states have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement," said CEO Alex Holmes.

Holmes explained that these developments have impacted the company's business and financial position, and made its current business model unsustainable.

The Chapter 11 will be a court-supervised process for an orderly wind-down of Bitcoin Depot's operations and the sale of its assets. In line with the process, the company's network of bitcoin ATMs has been taken offline, the press release said.

Bitcoin Depot's overseas entities, including those in Canada, will also be closed down.

Difficulties

Earlier in March 2026, Bitcoin Depot said it had overhauled its top leadership and appointed Holmes as its new CEO, after the company's money transmission license in Connecticut was suspended. The firm projected at the time that the core business revenue would drop 30% to 40% in 2026 due to state regulations.

Difficulties mounted for Bitcoin Depot as the firm revealed in the following month that its IT systems suffered a security breach that resulted in $3.7 million being stolen from its crypto wallets.

The company said last week that it was unable to deliver its first-quarter 2026 earnings results on time due to a "material weakness" in cash-in-transit reconciliation, adding that it needed more time to finalize financial statements.

Its preliminary unaudited financial results showed that revenue fell 49.2% year on year for the three months ended March 31, 2026. The company saw a net loss of $9.5 million for the quarter, compared with a net income of $12.2 million a year earlier.

Founded in 2016, Bitcoin Depot allowed digital asset users to convert cash into bitcoin (BTC) through a traditional kiosk system. It owned the largest network of bitcoin ATMs in North America and operated over 9,000 machines globally.

Bitcoin Depot's shares closed up 5.4% on Friday at $2.93, though the stock has fallen 29.6% over the past month and 79.5% over the past six months, according to Yahoo Finance.