Crypto ATM operator Bitcoin Depot files for bankruptcy months after leadership overhaul

Nasdaq-listed crypto ATM operator Bitcoin Depot has filed for Chapter 11 bankruptcy protection in Texas as mounting regulatory pressure and financial losses pushed the company toward an orderly shutdown.

According to a Monday press release from Bitcoin Depot, the filing was submitted in the Southern District of Texas and will allow the company to wind down operations under court supervision while selling off remaining assets. The company said its bitcoin ATM network has already been taken offline, while overseas operations, including its Canadian entities, will also be closed.

Chief executive Alex Holmes said in the statement that state regulators have introduced tighter compliance rules for crypto ATM operators, including transaction caps and restrictions on kiosk activity in some jurisdictions. Holmes added that litigation and regulatory enforcement actions had also increased, leaving the company’s business model unable to continue in its current form.

Pressure on the firm had already been building for months. Back in March, Bitcoin Depot replaced former chief executive Scott Buchanan with Holmes, the former MoneyGram CEO who previously served on the company’s board. At the time, the company said its core business revenue could decline between 30% and 40% in 2026 because of what it described as a changing regulatory environment.

Regulatory actions and losses deepen troubles

State authorities had intensified scrutiny of crypto ATM operators earlier this year, with several agencies linking kiosks to fraud complaints and scam-related losses. Connecticut regulators suspended Bitcoin Depot’s money transmission license in March and issued a temporary cease-and-desist order over alleged compliance failures, excessive fees, and incomplete refunds to scam victims.

Separately, Massachusetts sued the company in February, alleging that consumers were overcharged and that protections against scam activity were insufficient. Maine, Missouri, and Iowa also pursued enforcement actions tied to crypto ATM operations, according to earlier state filings and company disclosures.

Financial problems continued to stack up after the leadership overhaul. In April, the company disclosed that hackers breached its IT systems and stole about $3.7 million from crypto wallets controlled by the firm.

Only days before the bankruptcy filing, Bitcoin Depot said it could not release first-quarter 2026 earnings on schedule because of what it described as a “material weakness” tied to cash-in-transit reconciliation. Preliminary unaudited results released by the company showed revenue dropped 49.2% year over year during the quarter ended March 31, 2026.

At the same time, the company reported a net loss of $9.5 million for the quarter, compared with net income of $12.2 million during the same period a year earlier.

Founded in 2016, Bitcoin Depot built one of the largest crypto ATM networks in North America, operating more than 9,000 kiosks globally that allowed users to convert cash into bitcoin through physical terminals.

Trading data from Yahoo Finance showed Bitcoin Depot shares closed 5.4% higher on Friday at $2.93. Despite the daily gain, the stock has fallen 29.6% over the past month and nearly 80% over the last six months.