Bitcoin Depot, once the largest Bitcoin ATM operator in North America with 9,276 kiosks, filed for Chapter 11 bankruptcy protection on Monday, May 18, and has taken its entire ATM network offline. The company, which went public via a SPAC merger with GSR II Meteora Acquisition Corp in 2023, is shutting down completely.
Revenue collapse and state crackdown
The company's Q1 results tell a brutal story. Revenue dropped 49% year-over-year, gross profit fell 85% to $4.5 million, and it swung from a $12.2 million profit to a $9.5 million loss. CEO Alex Holmes said in the bankruptcy filing that states have imposed increasingly stringent compliance obligations — new transaction limits, outright restrictions or bans on BTM operations — making the business model unsustainable.
Bitcoin Depot's model charged retail users fees from 8% to 20% per transaction. That fee structure now looks untenable as regulators tighten rules around crypto kiosks.
Legal pressure and a fraud record
The company faces a high-profile lawsuit from attorneys general in Massachusetts and Iowa over alleged facilitation of crypto scams. Connecticut’s Department of Banking issued a temporary cease-and-desist in April 2026, moving to revoke Bitcoin Depot's money transmission license.
Crypto ATM fraud hit a record $389 million in reported losses last year, a 58% increase from 2024. Bitcoin Depot's network, with its thousands of machines, was a prime vector for scammers.
Canadian subsidiary and unresolved claims
Bitcoin Depot's Canadian arm, BitAccess, faces an $18.47 million arbitration award tied to an agreement with bankrupt U.S. kiosk operator Cash Cloud. That liability adds to the financial pressure the company is under.
The company filed voluntarily in the U.S. Bankruptcy Court for the Southern District of Texas. With the entire network offline, customers can no longer use any of its machines. The court will now oversee the dissolution process, while the lawsuits from Massachusetts and Iowa remain pending.
