Bitcoin Depot Inc. (NASDAQ:BTM) filed for Chapter 11 bankruptcy on Monday, leading to the shutdown of its entire network of 9,000 Bitcoin ATMs. The decision follows CEO Alex Holmes' statement regarding increasing regulatory pressures, including stringent compliance obligations and outright bans on Bitcoin ATM operations in certain jurisdictions, which rendered the business model unsustainable. This announcement caused the company’s stock to drop 33% to $0.01 in premarket trading.

The company also faced significant challenges earlier this year, including a security breach that resulted in the theft of $3.7 million from its crypto wallets. Additionally, preliminary results for Q1 2026 indicated a staggering 49.2% decline in revenue year-over-year, with a net loss of $9.5 million compared to a profit of $12.2 million the previous year. Bitcoin Depot was unable to deliver its Q1 earnings on time due to issues with cash-in-transit reconciliation. The company, which has been operating since 2016, is now winding down its operations, including those in Canada, under U.S. court supervision.