Largest Bitcoin ATM operator in N. America files for bankruptcy; BTM shares down 70%

Shares of Bitcoin Depot, the largest operator of crypto ATMs in North America, plunged more than 73% on Monday to a record low after the company announced it had filed for bankruptcy protection. Regulation of crypto ATMs in the U.S. has toughened, while some states have effectively banned their operation, thus making Bitcoin Depot’s business model unsustainable, the company said.

Bitcoin Depot shares fell more than 73% on the Nasdaq on Monday to $0.78 apiece. That marked the lowest level in the company’s public history. In premarket trading on Tuesday, the stock has lost another 18%.

On Monday, the company announced it had initiated a voluntary Chapter 11 bankruptcy process. The court-supervised process is intended to facilitate an orderly wind-down of operations and the sale of the company’s assets, according to the press release.

“The regulatory environment for BTM operators has shifted significantly: states have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and operators have faced increasing litigation and regulatory enforcement,” Bitcoin Depot CEO Alex Holmes said in the statement. Under those conditions, the company’s current business model is “unsustainable,” Holmes added.

Bitcoin Depot operates the largest network of crypto ATMs in North America, including the U.S. and Canada, according to CryptoProwl. The company says its network includes more than 9,000 kiosks globally where customers could convert cash into Bitcoin.

Until recently, the business had been expanding rapidly. In 2025 alone, the company announced several major deals, including the acquisition of 527 ATMs operating under the National Bitcoin ATM brand in the U.S., as well as its expansion into Hong Kong. Last year, Newsweek included Bitcoin Depot in its list of "America’s Greatest Companies."

Everything changed in 2026. The company faced high-profile lawsuits over allegations that it facilitated cryptocurrency fraud schemes, CryptoProwl wrote. Reported losses tied to fraud in the sector reached a record $389 million in 2025, up 58% versus 2024, according to the publication. Bitcoin Depot pointed to measures it had taken to protect customers from fraud, including updated protocols and enhanced identity verification.

In March, Bitcoin Depot replaced its CEO, appointing Holmes after the state of Connecticut suspended the company’s money transmission license. The following month, hackers breached the company’s IT systems and stole $3.7 million from its crypto wallets, writes Decrypt.

In May, Bitcoin Depot notified the U.S. Securities and Exchange Commission that it would not be able to file its first-quarter report on time. The operator identified a material weakness in its annual reporting related to its cash reconciliation process, but did not complete the remediation in time, according to the filing.

On preliminary figures, the company’s first-quarter revenue is down 49.2% year over year, at $80.7 million. The net loss totaled $9.5 million versus net income of $12.2 million in the same period of 2025. Excessive regulation was the main reason behind the deterioration, according to the company’s SEC filing.