Bitcoin Depot Files Chapter 11, Shuts 9,000 ATMs

Bitcoin Depot filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas and closed more than 9,000 Bitcoin ATMs across North America. The filing states the court process will guide an orderly wind-down of operations and a sale of assets.

CEO Alex Holmes blamed new transaction limits, outright state bans and rising litigation and regulatory enforcement costs for making the company’s business model unsustainable. He wrote, ‘After evaluating all options, we determined to initiate this court-supervised process to facilitate an orderly wind-down of operations and a sale of the Company’s assets.’

The bankruptcy petition asks the court to include Bitcoin Depot’s Canadian entities in the U.S. proceedings and notes that separate restructuring steps are expected in Canada.

Financial pressure built before the filing. Bitcoin Depot reported a 49.2% drop in revenue year over year in the first quarter of 2026 and a $9.5 million net loss, compared with $12.2 million in net income in the same quarter a year earlier. The company’s stock fell about 79% over the prior six months. An SEC filing earlier this month flagged substantial doubt about the company’s ability to continue as a going concern.

Operational setbacks this year accelerated the decline. In March the firm overhauled leadership and named Holmes CEO after Connecticut suspended Bitcoin Depot’s money transmission license. In April attackers accessed the company’s IT systems and removed $3.7 million from corporate crypto wallets.

Bitcoin Depot is facing enforcement actions and lawsuits from multiple state regulators. Its Canadian subsidiary is contesting litigation tied to an $18.5 million award dispute.

States and regulators have tightened rules for Bitcoin ATMs. Indiana and Tennessee have outlawed the machines, and the Canadian government has proposed limits on kiosk operations.

With more than 9,000 kiosks offline, customers who used the machines for cash-to-crypto or crypto-to-cash transactions will need alternatives. Franchise partners and property owners that hosted the units will be affected as the company moves to wind down operations.

The Chapter 11 filing will be used to manage creditor claims and sell assets. Bitcoin Depot did not provide a timetable for a sale or a full list of creditors or potential bidders, and regulators and plaintiffs have not set hearing dates related to the bankruptcy case.