North America's biggest Bitcoin ATM network just went dark

Bitcoin Depot files for Chapter 11, shuts entire kiosk network

Bitcoin Depot (@Bitcoin_Depot), once the largest $BTC ATM operator in North America, filed for voluntary Chapter 11 bankruptcy protection on May 18 and immediately took its entire network offline. The filing landed in the US Bankruptcy Court for the Southern District of Texas.At one point the company operated 9,276 kiosks, allowing customers to convert cash into bitcoin at retail locations throughout the US, Canada and Australia.The company went public on Nasdaq in 2023.

The Chapter 11 process will facilitate an orderly wind-down of Bitcoin Depot's operations and the sale of its assets.Canadian entities will join the US proceedings, while other foreign units wind down under applicable foreign law.

Revenue collapse and a regulatory wall

The financial deterioration was severe. Revenue fell $80.7 million year-over-year, a 49.2% decline, to approximately $83.5 million for the quarter ending March 31, 2026. Gross profit collapsed 85.5%, dropping from $31.2 million to $4.5 million, and the company swung to a net loss of $9.5 million from net income of $12.2 million in the same period a year earlier.Cash reserves fell from $65.6 million in December to $44.0 million by March, and the company accrued over $20 million in legal judgments during Q4 2025.

On May 12, Bitcoin Depot filed a notification of late filing with the SEC, disclosing it could not submit its Q1 2026 Form 10-Q on time due to a material weakness in its cash-in-transit reconciliation process. That disclosure also carried a going concern warning, a formal signal that management had doubts about the company's ability to survive the next 12 months.

Regulatory pressure was the decisive blow. In March, Bitcoin Depot replaced former chief executive Scott Buchanan with Alex Holmes (@walexholmes), the former MoneyGram CEO who previously served on the company's board.At the time, the company said its core business revenue could decline between 30% and 40% in 2026 because of what it described as a changing regulatory environment. Holmes later called the model unsustainable. Indiana became the first state to ban the kiosks in March, followed by Tennessee and Minnesota.Connecticut suspended Bitcoin Depot's operating license in March.In February 2026, Massachusetts Attorney General Andrea Campbell filed suit against the company alleging it facilitated cryptocurrency scams targeting consumers. Iowa's attorney general brought similar claims, asserting that Bitcoin Depot's pricing was deceptive and that the company allowed known fraud transactions to proceed.

The fraud backdrop was damaging for the entire sector. The FBI logged 13,460 crypto-kiosk fraud complaints in 2025, with reported losses of $389 million, a 58% jump from the prior year.Industry analysts noted that Bitcoin ATM firms' traditional model historically depended on high transaction spreads and limited regulatory scrutiny to offset compliance, logistics, and fraud remediation costs. With that model no longer viable, Bitcoin Depot's collapse may serve as a warning for the rest of the industry.

Sources:
CoinDesk: Bitcoin Depot files for bankruptcy
Bitcoin Magazine: Bitcoin Depot (BTM) Files For Chapter 11
The Block: Bitcoin Depot files for Chapter 11 to wind down business