Crypto ATM Operator Bitcoin Depot Files for Chapter 11 Bankruptcy

In brief

• Bitcoin Depot has filed for Chapter 11 bankruptcy in Texas federal court and shut down its entire ATM network.
• The company operated over 9,000 Bitcoin ATM locations across North America before closure.
• CEO Alex Holmes blamed transaction limits, state bans, and rising litigation costs for the collapse.

Bitcoin Depot, North America's largest Bitcoin ATM operator, filed for Chapter 11 bankruptcy protection and shut down its entire network of over 9,000 machines.

CEO Alex Holmes blamed an increasingly hostile regulatory landscape for the publicly-traded company's collapse in a statement, arguing that the regulatory environment for Bitcoin ATM operators operators has “shifted significantly,” rendering Bitcoin Depot’s business model “unsustainable.”

“States have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement," Holmes said, noting that the crackdown has “materially affected Bitcoin Depot's business and financial position.”

The company exhausted other alternatives before seeking court protection, Holmes said, explaining that, "After evaluating all options, we determined to initiate this court-supervised process to facilitate an orderly wind-down of operations and a sale of the Company’s assets."

The U.S. Bankruptcy Court for the Southern District of Texas will oversee proceedings that include Bitcoin Depot's Canadian entities, with the company expecting to commence separate restructuring proceedings in Canada.

Financial pressures had mounted for months before the bankruptcy filing. Bitcoin Depot reported a 49.2% revenue decline year-over-year for the first quarter of 2026, posting a $9.5 million net loss compared with $12.2 million in net income a year earlier.

The company's stock plummeted 79.48% over the past six months as investors fled amid regulatory uncertainty.

Bitcoin Depot’s troubles accelerated after a series of setbacks this year. The firm overhauled its leadership in March 2026, appointing Holmes as CEO after Connecticut its money transmission license. A month later, the firm revealed that hackers had breached the company's IT systems and from its crypto wallets.