Atlanta, May 20, 2026, 06:11 EDT
- Nasdaq is set to suspend trading in Bitcoin Depot’s common stock and warrants starting May 26. The move follows the company’s Chapter 11 filing and its failure to submit its first-quarter report.
- The company pulled its Bitcoin ATM network offline and is looking for a court-led wind-down and asset sale.
- The collapse comes after the company faced a steep revenue fall, fraud scrutiny, state bans, and over $20 million in legal judgments piling up.
Bitcoin Depot said Nasdaq plans to suspend trading in its shares and warrants next week, after the Bitcoin ATM operator’s Chapter 11 filing and decision to wind down.
Nasdaq notified the Sandy Springs, Georgia-based Bitcoin Depot on May 18 that its shares would be suspended from trading at the open on May 26, the company said in a securities filing. Nasdaq pointed to the company missing its first-quarter filing deadline. Bitcoin Depot does not plan to appeal, according to the filing.
The notice gives a public end date to a pullback that was already underway for a company that called itself North America’s biggest Bitcoin ATM operator. The firm’s kiosks let users buy bitcoin with cash at shops, gas stations and other spots, but fraud losses, stricter state regulations and lower transaction caps have made the business tougher.
Bitcoin Depot and some affiliates filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas on May 17. The filings ask to wind down operations and sell off assets. Chapter 11 lets a company sell, restructure, or close down with court approval. Bitcoin Depot gave workers 60 days’ notice of planned layoffs.
Bitcoin Depot said it has taken its Bitcoin teller machine network offline. BTMs let people use cash to buy bitcoin at a kiosk, with bitcoin sent to a digital wallet instead of getting cash out like at a bank ATM. The company said its Canadian entities are included in the U.S. process and said other foreign units will wind down under local law.
Alex Holmes, CEO of Bitcoin Depot, said the company has boosted fraud checks, like tougher ID verification, new customer warnings, and capped transaction sizes. Holmes said some states have put in tougher compliance rules, and certain places now have tighter limits or outright bans on BTM operators. “Under these circumstances, the Company’s current business model is unsustainable,” Holmes said. Bitcoin Depot Inc.
Bitcoin Depot warned about its finances before the filing. On May 12, the company reported first-quarter revenue down $80.7 million, dropping 49.2% from a year ago. Gross profit slumped 85.5% to $4.5 million. The net loss was $9.5 million, compared to a net income of $12.2 million the prior year. Management said it had “substantial doubt” about whether it could stay in business. Bitcoin Depot Inc.
Fraud remains a big challenge. The FBI’s Internet Crime Complaint Center reported on May 15 that it got over 13,400 complaints in 2025 tied to cryptocurrency kiosks, with losses topping $388 million. That’s a 58% jump from 2024. The FBI said these losses came from scams involving kiosks and may also cover other kinds of transactions.
Bitcoin ATM fraud losses hit $65 million in the first half of 2024, the Federal Trade Commission warned, with a median loss of $10,000. The FTC said the machines are often placed in busy spots and accept cash for crypto. Scammers take advantage of this by getting victims to scan a QR code, which sends money straight to the scammer’s wallet.
Legal action has hit more than just Bitcoin Depot. This year, Massachusetts sued Bitcoin Depot, accusing it of misleading customers and handling scam-related transactions. Iowa has gone after both Bitcoin Depot and CoinFlip, while Washington, D.C. filed a suit against Athena Bitcoin, another crypto ATM company. Bitcoin Depot told ICIJ it disputes claims that it helps run scams or tricks users, saying compliance and consumer protection are central to its business.
Minnesota is now the third state reported to pass a ban on cryptocurrency ATMs, following Tennessee and Indiana. Operators must take their machines offline in Minnesota by August. Bitcoin Depot had more than 100 crypto ATMs in the state out of about 8,500 nationally, according to the Minnesota Star Tribune.
The assets still might have value. A buyer could try to restart some machines in states that allow them, using stricter ID checks and lower transaction limits. But the same controls, along with lawsuits, refund claims and capped fees, could mean too little revenue per machine to make it worth the effort. Bitcoin Depot told investors its securities might not reflect any recovery in bankruptcy and warned holders could lose most or all of their investment.
