New Regulations Force Bitcoin Depot into Bankruptcy as Thousands of ATMs Close

Jakarta, CNBC Indonesia - Digital currency, part of cryptocurrency assets such as Bitcoin, previously had its own ATMs in the United States (US) and several other countries.

However, Bitcoin Depot, a Bitcoin ATM company listed on the New York Stock Exchange Nasdaq, has completely ceased operations and filed for ‘Chapter 11’ bankruptcy protection recently.

The Atlanta-based company voluntarily filed for bankruptcy at the US Bankruptcy Court for the Southern District of Texas on Monday, 18 May 2026.

The firm stated it will shut down operations and sell its assets, with all its ATM networks now offline.

Previously, Bitcoin Depot operated 9,276 kiosks allowing customers to convert cash to Bitcoin in the US, Canada, and Australia.

The bankruptcy filing followed the company’s Q1 2026 performance report showing a 49% year-on-year revenue drop.

In the same period, the company reported a $9.5 million loss after previously recording a $12.2 million profit. Gross profit also plummeted 85% to $45 million.

Bitcoin Depot blamed complex regulations for its business collapse.

“States have imposed stricter compliance requirements, including new transaction limits and, in some jurisdictions, direct restrictions or bans on Bitcoin ATM operations. Operators face increased litigation and regulatory enforcement,” said Alex Holmes, CEO of Bitcoin Depot, in a press release cited from CoinDesk on Wednesday, 27 May 2026.

“Recent regulatory developments have impacted Bitcoin Depot’s business and finances. Under current conditions, the company’s business model is unsustainable,” he added.

Bitcoin Depot faces high-level lawsuits led by attorneys general in Massachusetts and Iowa over allegations of facilitating cryptocurrency fraud.

Cryptocurrency ATM fraud reached a record $389 million in losses last year, a 58% increase from 2024, drawing increased attention from regulators and prosecutors.

The company’s Canadian entities have been included in the US bankruptcy proceedings. Other non-US entities will be gradually shut down in accordance with local regulations.

The company’s collapse occurs as the wider industry experiences institutional adoption through alternative investment instruments such as ETFs and recent developments from the Clarity Act.