Bitcoin Depot (NASDAQ: BTM) filed for voluntary Chapter 11 bankruptcy protection on Monday in the U.S. Bankruptcy Court for the Southern District of Texas. The company is shutting down its entire network of more than 9,000 Bitcoin ATM kiosks and plans to sell off its assets. Shares plunged 80% on the news, falling from about $3 to roughly $0.75.
Regulatory crackdown across states
CEO Alex Holmes cited a hostile shift in the regulatory environment as the force behind the company's collapse. States imposed stringent compliance obligations, transaction limits, and in some cases outright restrictions or bans. Indiana became the first state to ban Bitcoin ATM kiosks in March 2026, followed by Tennessee and Minnesota. Connecticut suspended Bitcoin Depot's operating license that same month. At its peak, the company had machines in 47 states and a cash-to-bitcoin checkout product in 31 states.
Revenue halves, losses pile up
Preliminary Q1 2026 results, disclosed in a late SEC filing on May 12, showed revenue fell 49.2% year-over-year to roughly $83.5 million. Gross profit collapsed 85.5% to $4.5 million, and the company swung to a net loss of $9.5 million from net income of $12.2 million a year earlier. Total operating expenses rose 32.3%, driven by litigation costs, and over $20 million in legal judgments accrued during Q4 2025. Cash reserves dropped from $65.6 million at the end of 2025 to $44.0 million by March 31. Bitcoin Depot also disclosed a material weakness in its cash-in-transit reconciliation process and issued a going-concern warning.
Fraud complaints surge, states sue
The FBI logged 13,460 crypto-kiosk fraud complaints in 2025, with reported losses of $389 million — a 58% jump from the prior year. In February 2026, Massachusetts Attorney General Andrea Campbell sued Bitcoin Depot, alleging it facilitated cryptocurrency scams targeting consumers. Iowa's attorney general brought similar claims, asserting that Bitcoin Depot's pricing was deceptive, that it allowed known fraud transactions to proceed, and that its refund policies exploited victims.
Bitcoin Depot has taken its entire ATM network offline as part of the filing. The company intends to wind down all operations and sell its remaining assets through the bankruptcy process. With regulatory pressure tightening and finances in freefall, the once-largest Bitcoin ATM operator is effectively closing up shop.
