Bitcoin Depot Files To Wind Down Operations; Shares Plummet

The company said it filed for bankruptcy protection in the US Bankruptcy Court for the Southern District of Texas to wind down operations and sell its assets. 

Crypto ATM operators operate kiosks that allow users to convert cash into cryptocurrencies and, in some cases, withdraw cash from crypto holdings. Bitcoin Depot said its crypto ATM network has already been taken offline. 

The bankruptcy follows growing legal costs and mounting regulatory pressure on the business – the company previously disclosed more than $20mn in legal judgments and warned there was substantial doubt about its ability to continue operating after revenue fell 49% year-over-year in the first quarter of 2026 to $80.7mn. 

"The regulatory environment for BTM operators has shifted significantly: 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," chief executive Alex Holmes said in a statement announcing the bankruptcy filing.

Holmes added that these developments have affected Bitcoin Depot’s business and financial position significantly. "Under these circumstances, the Company’s current business model is unsustainable," Holmes said.

The filing notes that the company’s Canadian entities are also included in the US Court-supervised process and "it expects to commence restructuring proceedings in Canada in due course." 

According to data from Yahoo Finance, Bitcoin Depot had around 135 employees. It operated more than 9,000 crypto ATM kiosks globally as of August 2025, making it one of the largest crypto ATM operators in North America with a market share of 24%, according to CoinATMRadar.

The company's shares plunged 73.2% to a record low of $0.78 following the bankruptcy filing.

All-time lows

The bankruptcy highlights the growing pressure facing crypto ATM companies, partly from rising competition from exchanges and fintech platforms that offer faster and cheaper ways to move money between cash and crypto.

However, analysts say the broader crypto cash withdrawal market is changing rather than disappearing completely. Exchanges and money transfer companies are increasingly offering crypto cash-out services without relying on dedicated ATM networks.

Earlier this month, for instance, cryptocurrency exchange Kraken partnered with MoneyGram to let users convert crypto into cash through MoneyGram’s global payout network. 

"Digital assets only matter at scale when they can interoperate with the financial systems people already depend on," Arjun Sethi, Kraken Co-CEO, said at the time. 

Fraud concerns

Crypto ATMs became popular by allowing users to buy Bitcoin with cash or convert crypto into cash. However, regulators in the US and Canada have increasingly cited concerns about the machines over fraud and scams.

According to recent data from the Federal Bureau of Investigation (FBI), crypto ATM and kiosk scams led to 13,460 complaints and $389mn in losses in 2025. Complaints also rose 23% from 2024, while financial losses surged by 58%.

The data also found that older Americans were hit the hardest, with people aged 60 and older accounting for more than 6,100 complaints and around $257mn in losses tied to crypto ATM scams.

Sandmark reached out to Bitcoin Depot for comment but had not received a response by publication.