The largest cryptocurrency ATM operator in the US has declared bankruptcy. Shares fell by 70%

Quotes of Bitcoin Depot, the largest cryptocurrency ATM operator in North America, collapsed on May 18 by more than 73%, to a source minimum. The company announced that it had filed for bankruptcy in court. Regulation of cryptocurrency ATMs in the U.S. has gotten tougher and some states have actually banned their operation, making Bitcoin Depot's business model unsustainable, the issuer explained.

Bitcoin Depot shares fell more than 73% to $0.78 on Nasdaq on May 18. This is the minimum for the entire public history of the company. At the premarket on Ma 19, the quotes lost another 18%.

On Ma. 18, the company announced, it has initiated a voluntary bankruptcy proceeding. It will be supervised by the court, which will assist in the orderly termination of the company's operations and sale of assets, the press release said.

The regulatory environment for ATM operators has changed significantly: states have introduced stricter requirements, including new transaction limits, and in some jurisdictions - direct restrictions or bans on ATM operations, which leads to an increase in litigation, explains Bitcoin Depot CEO Alex Holmes (his words are quoted in the report). He believes that in these conditions the company's business model is unsustainable.

Bitcoin Depot is the operator of the largest cryptocurrency ATM network in North America (USA and Canada), writes CryptoProwl. Its network has more than 9 thousand machines around the world, in which customers could exchange cash for bitcoins, the company itself writes.

Until recently, its business has been growing rapidly. In 2025 alone, the company announced several major deals, including the acquisition of 527 ATMs in the U.S. operating under the National Bitcoin ATM brand, as well as entering the Hong Kong market. Last year, Newsweek included Bitcoin Depot in its list of America's greatest companies.

That all changed in 2026. The company is facing high-profile lawsuits over allegations of facilitating cryptocurrency fraud, CryptoProwl writes. In 2025, fraud losses in this area reached a record $389 million, a 58% increase from 2024, the publication cites figures. Bitcoin Depot itself points to the steps it is taking to protect customers from fraud, including updating protocols and verifying identities.

Bitcoin Depot changed its CEO in March 2026, appointing Holmes to the position after the state of Connecticut suspended the company's money transfer license, and the following month, hackers broke into its IT systems and stole $3.7 million from cryptocurrency wallets, Decrypt writes.

Bitcoin Depot notified the US Securities and Exchange Commission (SEC) in May that it would not be able to file its first quarter 2026 report on time. The operator found a material weakness in its annual reporting related to the cash reconciliation process, but did not have time to correct it, the report said.

According to preliminary data, the company's quarterly revenue in 2026 fell 49.2% year-over-year to $80.7 million, with a net loss of $9.5 million compared to a net income of $12.2 million for the same period in 2025. The main reason for such dynamics is excessive regulation, the company said in its SEC filings.