Crypto ATM Operator Bitcoin Depot Files for Chapter 11 Bankruptcy

Bitcoin Depot, North America’s largest Bitcoin ATM operator, filed for Chapter 11 bankruptcy protection and shut down its entire network of over 9,000 machines.

CEO Alex Holmes blamed an increasingly hostile regulatory landscape for the publicly-traded company’s collapse in a statement, arguing that the regulatory environment for Bitcoin ATM operators operators has “shifted significantly,” rendering Bitcoin Depot’s business model “unsustainable.”

“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,” Holmes said, noting that the crackdown has “materially affected Bitcoin Depot’s business and financial position.”

The company exhausted other alternatives before seeking court protection, Holmes said, explaining that, “After evaluating all options, we determined to initiate this court-supervised process to facilitate an orderly wind-down of operations and a sale of the Company’s assets.”

The U.S. Bankruptcy Court for the Southern District of Texas will oversee proceedings that include Bitcoin Depot’s Canadian entities, with the company expecting to commence separate restructuring proceedings in Canada.

Financial pressures had mounted for months before the bankruptcy filing. Bitcoin Depot reported a 49.2% revenue decline year-over-year for the first quarter of 2026, posting a $9.5 million net loss compared with $12.2 million in net income a year earlier.

The company’s stock plummeted 79.48% over the past six months as investors fled amid regulatory uncertainty.

Bitcoin Depot’s troubles accelerated after a series of setbacks this year. The firm overhauled its leadership in March 2026, appointing Holmes as CEO after Connecticut suspended its money transmission license. A month later, the firm revealed that hackers had breached the company’s IT systems and stolen $3.7 million from its crypto wallets.

Bitcoin Depot flashed bankruptcy warnings earlier this month as ATM revenue fell and regulatory scrutiny intensified, while the company’s Canadian subsidiary faced ongoing legal battles involving an $18.5 million award dispute.

The broader Bitcoin ATM sector has struggled with similar pressures, with Tennessee becoming the second state to outlaw Bitcoin ATMs after Indiana in April, while the Canadian government has proposed a similar ban.