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Bitcoin Depot files for Chapter 11 bankruptcy

Photo: Adobe Stock

May 18, 2026

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Bitcoin Depot has filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court of the Southern District of Texas, according to a press release. It has also taken its entire network of bitcoin ATMs offline, which consists of more than 9,000 machines.

Alex Holmes, CEO of Bitcoin Depot, cited regulatory concerns, legal issues and transaction limits as the primary factors in this decision.

"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," Holmes said in the release.

The assets will be sold off under applicable law in the U.S., Canada and other countries.

"After evaluating all options, we determined to initiate this court-supervised process to facilitate an orderly wind-down of operations and a sale of the Company's assets. We are grateful to our customers, suppliers, and business partners for their support. I also want to thank our employees across the globe for their continued hard work and dedication," Holmes said.

In April 2026, Bitcoin Depot reported that hackers had stolen $3.6 million from company wallets.

In other bitcoin ATM news,Bitcoin Bancorp is expanding in California and Texas.

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