Bitcoin Depot, a company listed on Nasdaq under the ticker BTM and which once operated the largest network of bitcoin (BTC) ATMs in the United States, began a voluntary bankruptcy process under Chapter 11 in that country and will begin an orderly closure of operations.
The company reported on May 18, 2026 that it filed the application with the Bankruptcy Court of the Southern District of Texas and that it will move forward with a judicially supervised liquidation along with the sale of its assets. Its entire ATM network has already been disconnected.
BitcoinDepot allowed cash to be converted into bitcoin using physical units installed in retail stores in the United States, Canada and Australia. In 2025, it operated more than 9,000 locations globally and maintained a presence in 47 US states.
The company attributed its crisis to regulatory tightening on BTC ATM operators.
“States have imposed increasingly strict compliance obligations, including new limits on transactions and, in some jurisdictions, restrictions or outright bans on BTM operations, and operators have faced an increase in litigation and regulatory enforcement actions,” said Alex Holmes, CEO of Bitcoin Depot.
The executive added that “these events have materially affected Bitcoin Depot’s business and financial position” and concluded that “the company’s current business model is not sustainable.”
The financial pressure was already appearing in their preliminary results of the first quarter of 2026. According to reported data, revenue fell 49% year-on-year and The company went from a profit of 12.2 million dollars to losses of 9.5 million. Gross profit also plummeted 85%, to $4.5 million.
Bitcoin Depot is also facing lawsuits brought by the attorneys general of Massachusetts and Iowa, who accuse the company of facilitating scams linked to digital assets.
The case occurs in a context of growing regulatory pressure on this sector. US authorities increased monitoring of BTC ATMs due to its use in fraud, money laundering and telephone scams aimed mainly at older adults.
According to figures cited by US media, reported losses from fraud linked to digital asset ATMs reached 389 million dollars during 2025.
The company’s deterioration also impacted its shares. Bitcoin Depot, which is listed on the Nasdaq under the ticker BTM, closed on May 15 with a rise of 5.4%, to $2.93. HoweverAfter the bankruptcy declaration was announced, its shares plummeted more than 71% in the pre-market. trading near $0.82.
The bankruptcy also marks a strong contrast within the industry. This occurs while institutional adoption of BTC increases through exchange-traded funds (ETFs), regulated funds and legislative projects such as the CLARITY Act, an initiative that has just been approved in the US Senate and that seeks to establish clearer rules for the digital asset marketas reported by CriptoNoticias.
In this framework, physical cash-based models, such as BTC ATMs, face higher regulatory costs and increasingly complex operational viability.
Bitcoin Depot Fall Shows BTC Adoption Moving Forward, but not all business models linked to the asset manage to adapt to the new regulatory environment.