Bitcoin Depot Files for Chapter 11 and Plans Orderly Wind-Down

Bitcoin Depot, the Nasdaq-listed company once described as North America’s largest Bitcoin ATM operator, filed for voluntary Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Texas, took its entire Bitcoin ATM network offline, and said it plans to sell assets through a court-supervised process while winding down operations. The company said increasingly strict state compliance requirements, transaction limits, licensing demands, and in some cases bans on crypto ATM activity made its business model unsustainable, according to CEO Alex Holmes. The report said Bitcoin Depot operated in 47 U.S. states and offered its BDCheckout cash-to-bitcoin service in 31 states before going offline, while maintaining more than 9,000 machines as transaction volumes weakened. Financial results cited in the report showed Q1 2026 revenue fell by almost 50% year over year, gross profit dropped 85% to $4.5 million, and the company posted a $9.5 million net loss after reporting $12.2 million in revenue a year earlier. The article also pointed to growing legal and regulatory pressure, including a February lawsuit by Massachusetts Attorney General Andrea Campbell alleging the company’s machines facilitated scams, claims that more than half of its Massachusetts ATM revenue was tied to scam-related transactions, reported consumer losses there exceeding $10 million, and a temporary cease-and-desist order issued by Connecticut’s Department of Banking in April 2026.