Bitcoin Depot, once the leading cryptocurrency ATM operator in North America, filed for bankruptcy on Monday, marking yet another challenge for a struggling sector of the digital asset industry that has seen a steady decline for several years.
Chief Executive Officer Alex Holmes described the company’s business model as “unsustainable” and announced plans to sell off assets and halt operations. The extensive network of thousands of Bitcoin Teller Machines (BTMs) that enable users to buy, sell, send, and receive Bitcoin offline is already facing significant impacts.
Founded in 2016, Bitcoin Depot thrived during a wave of interest in cryptocurrency, attracting many customers who appreciated the ease of converting cash into digital assets at ATMs. However, the company has long been grappling with various obstacles.
ADVERTISEMENT
CONTINUE READING BELOW
The fallout from the collapse of the FTX crypto exchange in 2022 severely damaged Bitcoin Depot, which struggled to recover. Additionally, a recent crackdown on regulations affected ATM operators, prompting some states to impose outright bans due to concerns about illicit activities. Holmes cited “increasing litigation and regulatory enforcement” as significant factors in Bitcoin Depot’s decision to file for Chapter 11 protection.
A brief spike in cryptocurrency prices during the second Trump administration did little to entice people back to Bitcoin ATMs, typically located in gas stations, convenience stores, and nightlife establishments. The market has since entered another prolonged downturn, starting in October, with Bitcoin prices remaining around 40% lower than their peak, further reducing the appeal of crypto investments.
Bitcoin Depot has filed for bankruptcy protection in the Southern District of Texas, as mentioned in its announcement on Monday. The bankruptcy proceedings also include its Canadian entities under U.S. court supervision.
Other Bitcoin ATM providers such as CoinFlip, Athena Bitcoin, Bitstop, and RockItCoin are noted by CoinATM Radar, which monitors this sector.
© 2026 Bloomberg
