Bitcoin Depot Files for Chapter 11 Bankruptcy, Stock Falls 73% as ATM Network Shuts Down

Bitcoin Depot filed for voluntary Chapter 11 bankruptcy on May 18, taking its Bitcoin ATM network offline after state regulatory pressure and tightened transaction limits made its kiosk business unsustainable. The company, which operated over 9,000 ATM locations globally, said the bankruptcy filing in the US Bankruptcy Court for the Southern District of Texas aims to support an orderly wind-down and asset sale.

Q1 revenue fell US$80.7 million, or 49.2%, year-over-year as transaction volume declined under enhanced compliance controls. Gross profit dropped 85.5% to US$4.5 million, while the company reported a preliminary net loss of US$9.5 million for Q1. BTM shares fell approximately 73% following the filing. Chief Executive Alex Holmes stated that state compliance obligations, transaction limits, restrictions, litigation and enforcement actions made the current business model unsustainable.