Bitcoin Depot Files Chapter 11 as US Crypto ATM Operator Winds Down Operations

US-based crypto ATM operator Bitcoin Depot has filed for Chapter 11 bankruptcy in the Southern District of Texas as it moves to shut down and wind down its business operations. The company said the decision comes after increasing regulatory pressure that made its business model difficult to sustain.

CEO Alex Holmes said state-level rules have tightened significantly, including stricter compliance requirements, transaction limits, and in some regions outright bans on bitcoin ATM services. He added that ongoing regulatory enforcement and lawsuits have further damaged the company’s financial stability.

Bitcoin Depot confirmed that its entire ATM network has already been taken offline as part of the wind-down process. Its international operations, including those in Canada, will also be closed.

Security Breach and Financial Decline Weaken Business

The company faced additional pressure after a March 2026 leadership change, when Holmes was appointed CEO following the suspension of a money transmission license in Connecticut. At the time, the firm warned that revenue could fall by 30% to 40% due to regulatory challenges.

In April, Bitcoin Depot suffered a security breach that led to the theft of $3.7 million from its crypto wallets, further weakening its position.

Financial results also showed sharp decline. Revenue dropped 49.2% year over year for the first quarter of 2026, while the company posted a net loss of $9.5 million compared to a $12.2 million profit in the same period last year.

Founded in 2016, Bitcoin Depot once operated the largest bitcoin ATM network in North America with more than 9,000 machines globally, allowing users to convert cash into bitcoin through kiosks.