Bitcoin Depot Files Chapter 11, Pulls Crypto ATMs Offline

Bitcoin Depot filed for Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the Southern District of Texas and took its entire network of cryptocurrency ATMs offline. Canadian subsidiaries will join the U.S. proceedings while other foreign units will wind down under local law.

In the filing, CEO Alex Holmes wrote, “Operators have faced increasing litigation and regulatory enforcement. These developments have materially affected Bitcoin Depot’s business and financial position. Under these circumstances, the Company’s current business model is unsustainable.” State regulators have imposed transaction caps, tightened compliance requirements and in several cases banned kiosks.

Indiana enacted a ban in March, followed by Tennessee and Minnesota. Attorneys general in Massachusetts and Iowa have filed lawsuits against Bitcoin Depot, and Connecticut suspended the company’s operating license in March.

The company disclosed it could not file its quarterly 10-Q on time after Q1 2026 results weakened. Financial statements show revenue declined by $80.7 million, a 49.2% year-over-year drop for the first quarter of 2026. Gross profit fell 85.5% to $4.5 million from $31.2 million a year earlier. Cash on hand fell from $65.6 million in December to $44.0 million by March. The company recorded more than $20 million in legal judgments during the fourth quarter of 2025.

The Federal Bureau of Investigation logged 13,460 complaints tied to crypto kiosks in 2025, reporting alleged losses of $389 million, a 58% increase from 2024.

The Chapter 11 filing begins a court-supervised process to restructure obligations and resolve the company’s assets and liabilities. Bitcoin Depot has suspended customer access to its ATMs while the restructuring proceeds.