Key Highlights

  • Bitcoin Depot, once North America's largest Bitcoin ATM operator with over 9,200 kiosks across the U.S., Canada, and Australia, filed for Chapter 11 bankruptcy and took its entire network offline.

  • The company's revenue collapsed 49% year-over-year in Q1 2026, swinging from a $12.2 million profit to a $9.5 million loss as state regulators imposed transaction limits and several jurisdictions banned crypto ATMs outright.

  • Crypto ATM fraud reached a record $389 million in reported losses in 2025, a 58% increase from the prior year, triggering multi-state lawsuits and accelerating regulatory restrictions across the industry.

Bitcoin Depot, once the largest Bitcoin ATM operator in North America, filed for Chapter 11 bankruptcy protection on May 18 in a Texas federal court. The Nasdaq-listed company simultaneously announced it was shutting down its entire network of more than 9,200 kiosks spread across the United States, Canada, and Australia.

The collapse was driven by a combination of tightening regulation and mounting legal exposure. States across the U.S. introduced stricter compliance requirements for crypto ATM operators, including transaction caps and mandatory fraud disclosures, while several jurisdictions moved to ban the machines entirely. Bitcoin Depot is also named in a lawsuit led by attorneys general in Massachusetts and Iowa over allegations that its kiosks facilitated large-scale crypto scams targeting vulnerable users.

Financially, the deterioration had been accelerating for several quarters. Q1 2026 preliminary results showed revenue down 49% year-over-year, gross profit falling 85% to just $4.5 million, and a net loss of $9.5 million compared to a $12.2 million profit in the same period a year earlier.

The bankruptcy signals a broader contraction for the crypto ATM sector, which expanded rapidly during the 2021 bull cycle but has struggled under a more regulated environment. With fraud losses hitting a record $389 million in 2025 and public scrutiny intensifying, the era of unmonitored cash-to-crypto kiosks in convenience stores appears to be drawing to a close.