Bitcoin Depot Files for Chapter 11 Bankruptcy May 18, Following $3.7M Security Breach

According to The Block, Bitcoin Depot, a Nasdaq-listed Bitcoin ATM operator, filed for Chapter 11 bankruptcy on May 18 to wind down operations. CEO Alex Holmes cited regulatory environment changes as the primary driver, noting that stricter compliance requirements, new transaction limits, and outright bans on Bitcoin ATM operations in certain jurisdictions have made the current business model unsustainable.

The company disclosed a $3.7 million security breach in April and reported a first-quarter net loss of $9.5 million, compared to a net profit of $12.2 million in the same period last year, with revenues declining 49.2% year-over-year. Bitcoin Depot, founded in 2016, operates North America’s largest Bitcoin ATM network with over 9,000 machines globally.