Bitcoin Depot Files for Chapter 11, Shuts Down 9,000 ATMs
Bitcoin Depot, North America's largest Bitcoin ATM operator, filed for Chapter 11 bankruptcy in Texas federal court and shut down its entire network of over 9,000 machines. CEO Alex Holmes cited increased regulatory pressure including state transaction limits, bans in some jurisdictions, and rising litigation costs as rendering the business model unsustainable. The company reported a 49.2% revenue decline in Q1 2026 with a $9.5 million net loss. Additional setbacks included a leadership overhaul after Connecticut license suspension, a $3.7 million hack in April, and an $18.5 million award dispute in Canada. The U.S. Bankruptcy Court for the Southern District of Texas is overseeing the case, with separate proceedings planned in Canada. The broader Bitcoin ATM industry faces similar challenges, with Tennessee becoming the second state to ban such machines and Canada proposing a ban. Experts warn this bankruptcy may preview widespread industry consolidation.
Key facts
- Bitcoin Depot filed for Chapter 11 and shut down 9,000+ ATMs.
- CEO blamed state transaction limits, bans, and litigation costs.
- Q1 2026 revenue dropped 49.2%, net loss of $9.5 million.
- Company suffered a $3.7 million hack in April 2026.
- Tennessee became second US state to ban Bitcoin ATMs.
- Experts call it a preview of broader industry pressure.