Jakarta, ThedailyID — Bitcoin Depot officially shut down its crypto ATM operations and filed for Chapter 11 bankruptcy protection in the United States.
The Nasdaq-listed company submitted the filing voluntarily to the US Bankruptcy Court for the Southern District of Texas on May 18.
Bitcoin Depot stated that it would stop operations and sell company assets as part of the bankruptcy process. The company also confirmed that all of its Bitcoin ATM networks have already gone offline.
Previously, Bitcoin Depot operated around 9,276 crypto ATM kiosks across the United States, Canada, and Australia. The machines allowed customers to convert cash into Bitcoin and other cryptocurrency assets.
However, the company’s business performance weakened significantly during the first quarter of 2026.
Reports showed that Bitcoin Depot’s revenue dropped 49 percent year-on-year during the period. Meanwhile, the company recorded a US$9.5 million loss after previously posting a US$12.2 million profit.
Gross profit also plunged 85 percent to around US$45 million.
Bitcoin Depot blamed increasingly complex regulations for the collapse of its business operations.
CEO Alex Holmes stated that many US states introduced stricter compliance requirements, transaction limits, and restrictions targeting Bitcoin ATM operations.
According to Holmes, operators also faced rising litigation risks and tighter regulatory enforcement across several jurisdictions.
“The company’s business model cannot survive under current conditions,” Holmes stated in a press release quoted by CoinDesk.
Meanwhile, Bitcoin Depot also faced major lawsuits in Massachusetts and Iowa over allegations related to facilitating crypto fraud activities.
Authorities reported that crypto ATM scams caused record losses of around US$389 million last year. The figure increased 58 percent compared to 2024.
As a result, regulators and prosecutors increased scrutiny toward cryptocurrency ATM operators.
The company’s Canadian entities will now enter bankruptcy proceedings under the US legal process. Meanwhile, non-US business operations will gradually close according to regulations in each country.
Bitcoin Depot’s collapse happened while the broader crypto industry continued seeing institutional adoption growth through investment products such as Bitcoin ETFs.
At the same time, governments in several countries continue strengthening regulations surrounding digital assets and cryptocurrency transactions.
