TLDR
- Bitcoin Depot (BTCD), once North America’s largest Bitcoin ATM operator with 9,276 kiosks, has filed for Chapter 11 bankruptcy and shut down its entire network.
- Q1 revenue collapsed 49% year-over-year, gross profit fell 85% to $4.5 million, and the company swung from a $12.2 million profit to a $9.5 million loss.
- CEO Alex Holmes cited rising state regulations, transaction limits, and outright bans in some jurisdictions as making the business model “unsustainable.”
- The company faces lawsuits from attorneys general in Massachusetts and Iowa over alleged facilitation of crypto scams, with crypto ATM fraud hitting a record $389 million in 2025.
- Bitcoin Depot went public via a SPAC merger in 2023 and will now wind down operations in a court-supervised process, selling off assets.
Bitcoin Depot (BTCD), once North America’s largest Bitcoin ATM operator, is done. The Atlanta-based company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on Monday and has already pulled its entire network of 9,276 kiosks offline.
The company went public on Nasdaq in 2023 through a SPAC merger with GSR II Meteora Acquisition Corp. It will now wind down operations and sell assets through a court-supervised process.
The numbers heading into bankruptcy were brutal. Q1 revenue dropped 49% year-over-year. Gross profit fell 85% to $4.5 million. The company flipped from a $12.2 million profit to a $9.5 million loss in a single quarter.
CEO Alex Holmes didn’t bury the headline. “States have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations,” he said in the filing.
“These developments have materially affected Bitcoin Depot’s business and financial position. Under these circumstances, the Company’s current business model is unsustainable,” Holmes added.
The Fee Model That Stopped Working
Bitcoin Depot’s model was built on charging users between 8% and 20% per transaction — a premium that made sense when crypto apps were intimidating and ATMs were a genuine on-ramp for the underbanked.
That window closed. By 2024, apps like Coinbase and Cash App were offering sub-1% fees on any smartphone. The ATM kiosk went from convenient access point to expensive detour.
Running nearly 10,000 physical machines — with cash handling, security, logistics, and software costs — against falling transaction volume squeezed margins before regulators even got involved.
At its peak, Bitcoin traded near $76,860 while Bitcoin Depot’s infrastructure was already unwinding. The price of Bitcoin wasn’t the problem. The cost of the pipes was.
Legal and Regulatory Pressure Compounded the Collapse
The regulatory hit came from multiple directions at once. Connecticut’s Department of Banking issued a temporary cease-and-desist in April 2026, moving to revoke Bitcoin Depot’s money transmission license.
Attorneys general in Massachusetts and Iowa filed a high-profile lawsuit against the company, alleging it facilitated crypto scams.
Crypto ATM fraud reached a record $389 million in reported losses in 2025 — a 58% increase from 2024. That surge drew exactly the kind of regulatory attention Bitcoin Depot couldn’t absorb.
The company’s Canadian subsidiary BitAccess also faced an $18.47 million arbitration award tied to an agreement with bankrupt U.S. kiosk operator Cash Cloud, a liability disclosed in an SEC Form 8-K in November 2025.
Canadian entities are included in the U.S. bankruptcy process. Other international operations will wind down under local law.
BTCD stock ticked up 5.40% on the news, though that move reflects thin trading rather than any recovery story.
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