Bitcoin Depot filed for Chapter 11 bankruptcy on May 18, 2026, yanking 9,700 Bitcoin ATMs off the streets. The sudden shutdown followed a first-quarter revenue plunge of $80.7 million and a net loss of $9.5 million—swinging from last year's $12.2 million profit.
Red Ink in Q1
Bitcoin Depot's earnings took a brutal hit. Revenue dropped 49.2% year-over-year. Gross profit got crushed—down 85.5% to just $4.5 million. That left the company in the hole by $9.5 million. It's not the only problem. The firm saw its customer base shrink fast.
Elderly Targeted by Kiosk Fraud
Fraud complaints at crypto kiosks exploded in 2025. The FBI logged 13,460 cases—up 58% from the year before. Scammers stole $389 million total. Seniors took the hardest hit. Adults over 60 lost $257.5 million, more than two-thirds of all reported losses. The machines became a fraud pipeline.
Regulators Push Back
States moved against the kiosks. Indiana banned all Bitcoin ATMs in March 2026, killing 900 machines. California's 2025 law capped daily transactions at $1,000. Now Canada wants a full ban. Authorities point to the kiosks as fraud engines. They're right about the losses piling up. The timing isn't great for operators.
Bitcoin Depot's machines sit idle. The bankruptcy court will now decide their fate. No one knows when—or if—they'll come back online.
