Bitcoin Depot Files Chapter 11, Shuts Bitcoin ATMs

Bitcoin Depot filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas on Monday and simultaneously took its entire network of Bitcoin ATMs offline. The company said Canadian subsidiaries will join the U.S. case while other foreign affiliates will wind down under their local laws.

In court papers, Chief Executive Alex Holmes wrote that a regulatory shift has harmed Bitcoin ATM operators and that litigation and enforcement actions have materially affected the company’s finances. The filing included the statement: “Operators have faced increasing litigation and regulatory enforcement. These developments have materially affected Bitcoin Depot’s business and financial position. Under these circumstances, the Company’s current business model is unsustainable.”

State regulators have recently restricted or banned Bitcoin ATM operations. Indiana enacted a statewide ban in March, followed by bans in Tennessee and Minnesota. Connecticut suspended Bitcoin Depot’s operating license in March. The company is also facing lawsuits filed by attorneys general in Massachusetts and Iowa, according to filings accompanying the bankruptcy petition.

Financial disclosures included with the Chapter 11 filing show a sharp decline in revenue and cash. Bitcoin Depot reported Q1 2026 revenue that was $80.7 million lower than the same quarter a year earlier, a 49.2% decline. Gross profit fell to $4.5 million from $31.2 million a year earlier, an 85.5% decrease. Cash on hand declined from $65.6 million in December to $44.0 million by March. The company recorded more than $20 million in legal judgments in the fourth quarter of 2025 and said it could not file its quarterly 10-Q on time.

The filing also cited a rise in fraud complaints tied to crypto kiosks. It noted that the Federal Bureau of Investigation logged 13,460 crypto-kiosk fraud complaints in 2025 with reported losses of $389 million, a 58% increase from the prior year.

All kiosks were taken offline when the bankruptcy petition was filed. The company did not provide a timetable to restore service or a complete list of affected locations in initial court paperwork. The suspension of kiosk operations halts the company’s main source of transaction revenue as it begins a court-supervised reorganization.

Court documents state Bitcoin Depot intends to pursue reorganization under Chapter 11, which allows a company to restructure while operating under the supervision of the bankruptcy court. The Southern District of Texas will oversee the U.S. case while Canadian and other foreign units coordinate parallel or related proceedings under their home-country laws. The company notified customers and partners through court filings and regulatory notices but did not detail how affected users or merchants should seek refunds or account information in the initial filing.