Bitcoin Depot, one of the largest Bitcoin ATM operators in the United States, filed for Chapter 11 bankruptcy protection Monday.
The Atlanta-based company initiated proceedings in the Southern District of Texas, citing mounting regulatory pressure and unsustainable compliance costs. CEO Alex Holmes said that despite strengthening anti-fraud protections, enforcement actions made the business model unsustainable.
The company operated more than 9,000 kiosks globally as of August 2025. Those machines have already been taken offline. The firm is now pursuing an orderly wind-down and asset sale.
Bitcoin Depot's Canadian entities are included in the restructuring, with separate proceedings expected in Canada. Its remaining non-US entities will shut down under local laws.
Industry analysts say the collapse signals broader trouble for the crypto ATM sector. Roshan Dharia, CEO of Echo Base, said the traditional business model-which relied on high fees and limited scrutiny-is breaking down as states impose stricter consumer protection standards.
Shares of Bitcoin Depot plunged more than 70% in premarket trading. Since listing on the Nasdaq under the ticker “BTM” in July 2023, the stock has fallen roughly 95% to about $2.93.