Bitcoin Depot Contests $18.5M Award as Subsidiary Faces Dual Legal Battles

A Canadian subsidiary of Bitcoin Depot Inc. was slapped with an $18.47 million arbitration award following a protracted dispute with bankrupt crypto ATM operator Cash Cloud Inc. over alleged hardware and software failures that crippled thousands of machines.

The Atlanta-based Bitcoin ATM operator disclosed in a Form 8-K filing on Monday that an arbitral tribunal administered by the Canadian Arbitration Association ruled in favor of Cash Cloud after hearings held between December 2024 and October 2025. 

An arbitration award is a legally binding decision issued by a private arbitration panel that typically carries the same enforcement weight as a court judgment.

“The award represents the full amount of damages found by the tribunal based on Cash Cloud’s claims asserted in the arbitration,” Bitcoin Depot said in the filing. “BitAccess intends to continue to vigorously defend this matter.”

Decrypt has reached out to Bitcoin Depot for further comment.

Deal turns sour

Cash Cloud, once a top Bitcoin ATM platform that operated under the trade name Coin Cloud, was a Nevada corporation that owned and operated a network of approximately 5,700 kiosks before filing for bankruptcy.

BitAccess Inc., the Bitcoin ATM operating-system vendor that Bitcoin Depot acquired a controlling stake in through an equity purchase agreement in 2021, functions as Bitcoin Depot’s software arm.

After signing a Master Purchase Agreement in January 2020, Cash Cloud initiated arbitration in August 2022, alleging BitAccess breached the deal by delivering faulty hardware and underperforming kiosk software.

Cash Cloud told arbitrators the defects left large portions of its ATM fleet inoperable, triggering outages and direct revenue hits.

BitAccess is seeking to have the award set aside, though Bitcoin Depot acknowledged it “cannot predict with any degree of certainty the ultimate outcome of the matter.”

Bankruptcy proceedings

Apart from the Canadian arbitration, Bitcoin Depot faces a separate legal threat in the U.S. Bankruptcy Court for the District of Nevada, where Cash Cloud is seeking the same amount in damages.

Cash Cloud filed for Chapter 11 bankruptcy in Las Vegas in February 2023, blaming more than $153.9 million in debt on faulty machines, a failed software agreement with BitAccess, a costly hack, and alleged fraud by its chief marketing officer. 

The company filed the companion lawsuit in 2023, alleging that certain claims fall outside the Canadian tribunal’s jurisdiction and claiming additional derivative damages stemming from the same contractual dispute, resting on the same 2020 Master Purchase Agreement.

“The company believes the U.S. Bankruptcy Court action is without merit, intends to vigorously defend it, and that it substantially overlaps with the issues already before the Canadian arbitral tribunal,” the filing stated.

Quarterly performance

Bitcoin Depot’s Q3 revenue rose 20% year-over-year to $162.5 million and net income jumped 139% to $5.5 million, but both dropped quarter-to-quarter, revenue falling about 6% from Q2’s $172.1 million and profit sliding roughly 55% from $12.3 million.

The company’s Q3 earnings per share came in at $0.08, down from $0.16 in Q2.

Bitcoin Depot operates over 9,000 Bitcoin ATMs across the U.S., Canada, and Australia as of September.