TLDR
- Bitcoin Bancorp bought 2,547 Bitcoin Depot ATMs for $620,750, a fraction of their original value
- Bitcoin Depot filed for Chapter 11 bankruptcy in May after a 49% revenue collapse in Q1
- Bitcoin Depot had valued its kiosks at over $26 million as recently as Q4 2025
- Bitcoin Bancorp also acquired intellectual property, trademarks, patents, and the BitcoinDepot.com domain for an additional $110,500
- Crypto ATM fraud hit $389 million in losses in 2025, up 58% year over year
Bitcoin Bancorp, a small digital asset infrastructure company based in Las Vegas, has purchased more than 2,500 cryptocurrency ATMs from bankrupt Bitcoin Depot for just over $620,000.
LATEST: ⚡ Bitcoin Bancorp won the bid to buy 2,547 crypto ATMs from bankrupt Bitcoin Depot for $620,750, court records show. pic.twitter.com/rkfo9gcmsS
— CoinMarketCap (@CoinMarketCap) September 10, 2026
The deal was completed through Bitcoin Depot’s Chapter 11 bankruptcy proceedings. Bitcoin Depot had valued its property and equipment at more than $26 million as recently as Q4 2025, making the sale price a steep discount.
What Went Wrong for Bitcoin Depot
Bitcoin Depot, once the largest crypto ATM operator in the U.S., filed for bankruptcy in May after a rough first quarter. Revenue fell 49% compared to the same period a year earlier. The company also swung from a $12.2 million profit to a $9.5 million loss in the same timeframe.
CEO Alex Holmes pointed to tighter regulation as a key factor. States have added stricter compliance rules, transaction limits, and in some cases outright bans on crypto ATM operations. Holmes said these changes made the company’s business model “unsustainable.”
At its peak, Bitcoin Depot had a market cap of around $400 million and was listed on the Nasdaq. It operated about 9,700 ATMs across 48 U.S. states, 10 Canadian provinces, and six Australian states.
What Bitcoin Bancorp Is Getting
Bitcoin Bancorp, which trades on OTC Markets at $0.04 per share and has a market cap of around $18.5 million, won the bid for 2,547 ATM kiosks.
The company also paid an additional $110,500 for floorspace agreements, intellectual property, trademarks, patents, and the BitcoinDepot.com domain name.
Bitcoin Bancorp said the deal gives it an established physical network that could help speed up expansion without needing to build infrastructure from scratch.
Some transactions have already closed. The company expects the rest to wrap up in the coming quarter, subject to standard closing conditions.
The Bigger Picture on Crypto ATMs
Crypto ATMs have drawn increasing scrutiny from regulators worldwide. The U.K. banned them outright several years ago. Australia and Canada have also moved to clamp down more recently.
One reason regulators focus on them is their physical nature. An ATM sitting in a gas station is easier to target than a digital exchange or blockchain protocol.
Crypto ATM fraud caused $389 million in losses in 2025, up 58% from the prior year. Scammers commonly use the machines to collect cash from victims after building fake relationships online.
Despite the challenges, the sector is not disappearing. There were nearly 39,000 crypto ATMs operating worldwide as of March this year, with about 78% located in the U.S. The ten largest operators control roughly 78% of all locations.
The purchase of Bitcoin Depot’s former kiosks by Bitcoin Bancorp suggests smaller players are still willing to enter the space.
