Bitcoin Depot Inc. (NASDAQ: BTM) on Monday filed for Chapter 11 bankruptcy and took its entire network of 9,000 Bitcoin ATMs offline, sending the stock down 33% to $0.01 in premarket trading. CEO Alex Holmes said increasingly stringent state compliance obligations, new transaction limits, and outright bans on Bitcoin ATM operations in some jurisdictions made the business model unsustainable.
The company filed in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate an orderly wind-down and asset sale. The entire Bitcoin ATM network has been taken offline.
$3.7M Hack Added To Mounting Difficulties
Bitcoin Depot suffered a security breach in April that resulted in $3.7 million stolen from its crypto wallets.
The hack came one month after the company overhauled leadership and appointed Holmes as CEO following Connecticut's suspension of its money transmission license.
The firm projected core business revenue would drop 30% to 40% in 2026 due to state regulations at the time of the leadership change in March.
Q1 Revenue Collapsed 49% Year-Over-Year
Preliminary unaudited Q1 2026 results showed revenue fell 49.2% year-over-year for the three months ended March 31.
The company posted a net loss of $9.5 million compared with net income of $12.2 million a year earlier.
Bitcoin Depot was unable to deliver Q1 earnings on time due to "material weakness" in cash-in-transit reconciliation, requiring more time to finalize financial statements.
Founded in 2016, Bitcoin Depot owned the largest network of Bitcoin ATMs in North America and operated over 9,000 machines globally, allowing users to convert cash into Bitcoin through traditional kiosk systems.
Technical Breakdown Shows No Support
The weekly chart shows a parabolic spike to $0.75 in mid-2025 followed by nine consecutive months of distribution and collapse.
Every EMA remains stacked bearishly above the price, with the 200 EMA sitting far higher at $0.1170.
Moreover, bollinger Bands show the lower band at $0.0180 already breached. The stock is down 57.51% on the week with premarket extending losses to $0.01, representing a 33.33% decline.
Meanwhile, Bitcoin Depot included its Canadian entities in the U.S. court-supervised process and expects restructuring proceedings to begin in Canada. The company will wind down its other non-U.S. entities under applicable foreign laws.