Bitcoin Depot files Chapter 11 in Texas to wind down

Nasdaq-listed Bitcoin Depot filed for Chapter 11 in the Southern District of Texas on Monday to wind down operations, take its crypto ATM network offline and sell assets. The filing will let the company pursue an orderly, court-supervised wind-down and asset sales.

In a company statement, CEO Alex Holmes wrote: “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.” The company said those developments harmed its financial position and made its business model unsustainable.

The firm has taken its ATMs offline and will close overseas entities, including its operations in Canada. The filing structures the company’s closure under the court in Texas.

Problems intensified earlier this year. In March 2026 the company overhauled senior management and named Alex Holmes CEO after Connecticut suspended the company’s money transmission license. At the time executives projected core business revenue could decline 30% to 40% in 2026 because of state-level restrictions.

In April the company disclosed a security breach that resulted in $3.7 million stolen from its crypto wallets. Last week the firm reported it could not deliver first-quarter 2026 earnings on time because of a “material weakness” in cash-in-transit reconciliation and required more time to finalize financial statements.

Preliminary unaudited results for the three months ended March 31, 2026, showed revenue down 49.2% year over year and a net loss of $9.5 million, compared with net income of $12.2 million in the same period a year earlier.

Founded in 2016, Bitcoin Depot operated more than 9,000 machines globally at its peak and built a large North American BTM network. Its shares closed up 5.4% on Friday at $2.93; the stock has fallen 29.6% over the past month and 79.5% over the past six months.