Bitcoin Depot’s crypto ATM locations. Source: CoinATMRadar
Bitcoin Depot’s Canadian entities are also included in the restructuring process, with separate proceedings expected to begin in Canada. The company added that its remaining non-US entities will shut down under local laws.
Crypto ATMs have become a popular on- and off-ramp, allowing users to buy Bitcoin with cash or withdraw cash by selling it.
However, regulators in several US states and Canada have been scrutinizing the sector, citing complaints tied to scams and fraud.
Operators in the sector have also faced lawsuits, while multiple jurisdictions have proposed blanket bans on crypto ATMs.
Bitcoin Depot’s collapse may signal broader trouble ahead for the crypto ATM sector in the US as regulators tighten oversight of cash-to-crypto services.
“Bitcoin Depot’s bankruptcy is likely a preview of what the broader crypto ATM industry will face in the US over the next several years,” Roshan Dharia, CEO of Echo Base and a restructuring adviser, told Cointelegraph.
Dharia said the traditional crypto ATM business model relied on high transaction fees and relatively limited regulatory scrutiny to offset steep operating costs tied to compliance, cash handling, fraud remediation and revenue-sharing agreements with retail partners.
Related: Canada proposes crypto ATM ban over scams and money laundering
“That equation is breaking down as states increasingly impose consumer protection standards that compress fees, expand operator liability for scam-related activity, and raise expectations around transaction monitoring and reimbursement,” he said, adding:
“The result is that many crypto ATM operators may no longer be able to generate sufficient margin to support a nationwide network at scale.”
Bitcoin Depot shares plunged more than 70% in premarket trading following the bankruptcy announcement, according to TradingView data. Since debuting on the Nasdaq under the ticker “BTM” in July 2023, the company’s stock has fallen roughly 95% to about $2.93.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
More on the subject