Bitcoin Depot, one of the largest Bitcoin ATM operators in the US, filed for Chapter 11 bankruptcy protection as the company moved to wind down operations and sell its assets.
In a Monday announcement, Atlanta-based Bitcoin Depot said it started voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Southern District of Texas, citing mounting regulatory pressure and financial strain.
CEO Alex Holmes said the company strengthened anti-fraud protections in recent years, including stricter identity checks and lower transaction limits, but argued that growing compliance demands and enforcement actions made the business model “unsustainable.”
The filing marks one of the biggest collapses in the crypto ATM sector to date and highlights the increasing pressure facing companies that provide cash-to-crypto services in the US.
Thousands of Bitcoin ATMs taken offline
Bitcoin Depot said its network of Bitcoin ATMs has already been taken offline as part of the court-supervised restructuring process. The company operated more than 9,000 kiosk locations globally as of August 2025 and held one of the largest market shares in North America.
The company said the bankruptcy process is intended to support an “orderly wind-down” while allowing management to pursue a sale of its assets.
Bitcoin Depot’s first-day bankruptcy hearing is scheduled for Tuesday at 7:00 pm UTC, according to court information published on Kroll’s restructuring portal. The company appointed law firm Vinson & Elkins as legal adviser, while Portage Point Partners will oversee restructuring efforts.
Bitcoin Depot’s crypto ATM locations. Source: CoinATMRadar
Bitcoin Depot’s Canadian entities are also included in the restructuring process, with separate proceedings expected to begin in Canada. The company added that its remaining non-US entities will shut down under local laws.
Regulatory pressure weighs on the crypto ATM industry
Crypto ATMs have become a popular on- and off-ramp, allowing users to buy Bitcoin with cash or withdraw cash by selling it.
However, regulators in several US states and Canada have been scrutinizing the sector, citing complaints tied to scams and fraud.
Operators in the sector have also faced lawsuits, while multiple jurisdictions have proposed blanket bans on crypto ATMs.
Bleak outlook for crypto ATM operators
Bitcoin Depot’s collapse may signal broader trouble ahead for the crypto ATM sector in the US as regulators tighten oversight of cash-to-crypto services.
“Bitcoin Depot’s bankruptcy is likely a preview of what the broader crypto ATM industry will face in the US over the next several years,” Roshan Dharia, CEO of Echo Base and a restructuring adviser, told Cointelegraph.
Dharia said the traditional crypto ATM business model relied on high transaction fees and relatively limited regulatory scrutiny to offset steep operating costs tied to compliance, cash handling, fraud remediation and revenue-sharing agreements with retail partners.
Related: Canada proposes crypto ATM ban over scams and money laundering
“That equation is breaking down as states increasingly impose consumer protection standards that compress fees, expand operator liability for scam-related activity, and raise expectations around transaction monitoring and reimbursement,” he said, adding:
“The result is that many crypto ATM operators may no longer be able to generate sufficient margin to support a nationwide network at scale.”
Bitcoin Depot shares plunged more than 70% in premarket trading following the bankruptcy announcement, according to TradingView data. Since debuting on the Nasdaq under the ticker “BTM” in July 2023, the company’s stock has fallen roughly 95% to about $2.93.
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