Bitcoin Depot, a Nasdaq-listed operator of bitcoin ATMs, has filed for Chapter 11 bankruptcy in the Southern District of Texas to wind down operations and pursue the sale of its assets.

For full-year 2025, the company reported revenue of about $614.9 million, while management now expects 2026 core revenue to fall roughly 30% to 40% due to regulatory changes.

Bitcoin Depot says it has support from customers, suppliers, and employees and is continuing communications with advisors Vinson & Elkins (legal), Portage Point Partners (restructuring), and Joele Frank (communications).

The FBI documented 13,460 crypto-kiosk fraud complaints in 2025, totaling $389 million in losses, a 58% year-over-year increase, underscoring sector-wide risk.

Executives cited an increasingly stringent regulatory environment—tighter compliance, transaction limits, occasional bans, plus heightened litigation and enforcement—as making the current business model unsustainable.

CEO Alex Holmes noted that despite improvements in fraud protection and compliance, evolving regulation and enforcement have materially affected the company’s finances and viability.

First-day motions were filed to preserve essential operations during restructuring, including payroll and critical administrative functions.

The developments here may serve as a bellwether for other major crypto ATM operators facing mounting regulatory scrutiny and litigation.

Regulatory actions have intensified nationwide, with Indiana banning kiosks in March and other states considering restrictions or license suspensions, along with lawsuits filed by state attorneys general in Massachusetts and Iowa.

In Q1 2026, revenue fell 49.2% year over year to $80.7 million, gross profit dropped 85.5% to $4.5 million, cash reserves declined to $44.0 million, and the company accrued more than $20 million in legal judgments.

Its network of ATMs has been taken offline, and Canadian and other non-U.S. entities will undergo restructuring or wind-down under applicable laws.

Bitcoin Depot disclosed a security breach in April 2026, resulting in about $3.7 million stolen from crypto wallets and adding financial strain.