The largest Bitcoin ATM operator in the United States declares bankruptcy and ceases operations

Bitcoin Depot, the largest Bitcoin ATM network operator in North America, announced that it has filed for Chapter 11 of bankruptcy protection in Texas and is preparing to close its business and sell assets after escalating regulatory pressure and financial losses.

The Nasdaq-listed company said the regulatory environment in the United States has become stricter for digital currency ATM operators, imposing new restrictions on transactions and tightening compliance requirements in addition to banning activities in some states.

CEO Alex Holmes explained that the changes made the company’s business model unsustainable and said the company would begin an organized closure process under court supervision, including halting its ATM network, which includes more than 9,000 machines around the world.

This comes after the company faced a series of crises over the past few months, including the suspension of its money transfer license in Connecticut and a security breach that resulted in the theft of $3.7 million from its digital wallet.

The company also recently revealed that revenue fell nearly 50% in the first quarter of 2026, with a net loss of $9.5 million, compared with a profit of more than $12 million a year ago.

Although the company’s shares rose about 5% in the last trading day, they are still down about 80% in the past six months, reflecting declining investor confidence in the future of the industry amid increased regulatory pressure.

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