Photo: Michael M. Santiago / Getty Images News / Getty Images
Atlanta-based Bitcoin Depot, North America's largest Bitcoin ATM operator, has shut down its nationwide network of over 9,000 cryptocurrency ATMs and filed for Chapter 11 bankruptcy protection. The company announced this move on Monday (May 18), citing increasingly stringent state regulations as a primary factor in its decision. These regulations include transaction limits and outright bans in some jurisdictions, making it difficult for Bitcoin Depot to continue its operations.
Bitcoin Depot's CEO, Alex Holmes, explained that the regulatory environment for Bitcoin ATM operators has "shifted significantly," rendering the company's business model unsustainable. He noted that states have imposed tighter compliance rules, leading to increased litigation and regulatory enforcement. Holmes said, "After evaluating all options, we determined to initiate this court-supervised process to facilitate an orderly wind-down of operations and a sale of the company’s assets." The U.S. Bankruptcy Court for the Southern District of Texas will oversee the proceedings, which include Bitcoin Depot's Canadian entities.
The company's financial troubles have been mounting for months. Bitcoin Depot reported a 49.2% revenue decline year-over-year for the first quarter of 2026, posting a $9.5 million net loss compared to $12.2 million in net income a year earlier. The company's stock has plummeted 79.48% over the past six months due to investor concerns over regulatory uncertainty.
Bitcoin Depot's challenges reflect broader pressures faced by the Bitcoin ATM sector. States like Tennessee and Indiana have already banned Bitcoin ATMs, and the Canadian government has proposed a similar ban.
As the company winds down, it plans to sell its assets, and its Canadian entities are expected to commence separate restructuring proceedings in Canada. Despite the challenges, Holmes expressed gratitude to the company's customers, suppliers, and employees for their support during this difficult time.