Bitcoin Depot to Shut Down Its Network of 9,000 ATMs

Bitcoin Depot, a leading operator of cryptocurrency ATMs, has announced it is filing for bankruptcy in Texas and will discontinue all operations. The company is set to liquidate its assets entirely.

CEO Alex Holmes cited heightened regulatory pressures as the primary reason for the shutdown, noting that many states have introduced stricter compliance measures, including transaction limits and outright bans on crypto ATMs in certain areas.

The entire Bitcoin Depot network has already been taken offline, affecting operations in the United States and Canada. The company's challenges intensified after it lost its operating license in Connecticut back in March, which coincided with a leadership change and a significant revenue forecast drop of 40%. Additionally, in April, Bitcoin Depot suffered a cyberattack that resulted in a loss of $3.7 million.

Preliminary financial reports indicate that Bitcoin Depot's revenue nearly halved in the first quarter, leading to a net loss of $9.5 million, compared to a profit of $12.2 million during the same period last year. The company attributed these financial woes to its inability to adapt to the new regulatory landscape.

Founded in 2016, Bitcoin Depot was once the largest cryptocurrency ATM operator in North America, managing over 9,000 machines. However, its stock has dramatically fallen by 94.06% on Nasdaq over the past six months.