The largest Bitcoin ATM company in North America entered bankruptcy proceedings Monday, immediately shuttering all machines, including roughly 200 across the greater Houston area.
Bitcoin Depot began the Chapter 11 bankruptcy process in the U.S. Bankruptcy Court for the Southern District of Texas, per a release from the company, ending operations of its roughly 9,700 machines, mainly concentrated in various convenience stores and gas stations. Bitcoin Depot reportedly lost 49 percent of its revenue from 2025 to 2026, with a net loss of $9.5 million across the last year, per cryptocurrency reporter Molly White.
In a statement Monday, CEO Alex Holmes blamed a rapidly changing regulatory landscape for the collapse, saying states across the country had imposed stricter compliance rules, lower transaction limits and, in some cases, outright bans on Bitcoin ATM operations.
He also cited widespread fraud and scams that preyed on users of Bitcoin Depot ATMs, including a $3.7 million seizure of assets from an assortment of crypto wallets after hackers breached the company’s IT systems in April.
“Over time, the Company has continued to strengthen its protocols and procedures to combat fraud and protect the customers who use its BTMs, including enhanced identity verification, customer fraud warnings, and its more recent adoption of lower transaction limits for its customers,” Holmes said in a company release Monday. “Nevertheless, the regulatory environment for BTM operators has shifted significantly: states have imposed increasingly stringent compliance obligations, including new transaction limits, and in some jurisdictions, outright restrictions or bans on BTM operations; and 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.”
Bitcoin Depot launched in 2016. The company then began installing its network of ATMs across North America, and first began trading on the Nasdaq in 2023. It’s unclear the status of transactions that were pending when the network of ATMs shut down on Monday. Per Alex Ioannou of 99 Bitcoins, users with still-pending transactions may need to recoup their money through the bankruptcy court process.