Bitcoin Depot Bankruptcy: CEO Alex Holmes Reveals Reasons, BTM Stock Crash

Bitcoin Depot, one of the world’s largest Bitcoin ATM operators, on Monday said it has filed for voluntary Chapter 11 bankruptcy. The firm with over 9000 ATMs cited stricter regulations, transaction limits, lawsuits, and enforcement crackdowns as reasons. BTM stock has recently crashed more than 42% in a week.

Bitcoin Depot Initiates Bankruptcy and Asset Sales

Bitcoin Depot Inc (NASDAQ: BTM) has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, according to a May 18 press release.

The company seeks to facilitate an orderly wind-down of operations and the sale of its assets. The company stated that its network of Bitcoin teller machines (BTMs) has been taken offline.

Notably, the U.S. and Canadian entities are included in the proceedings, with plans for additional restructuring in Canada and wind-down of non-U.S. operations under applicable laws.

“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,” said CEO Alex Holmes.

Must Read: Former Bitcoin Depot CEO Scott Buchanan’s Exclusive Opinion

Bitcoin Depot CEO Alex Holmes Reveals Rising Difficulties

Alex Holmes, CEO of Bitcoin Depot, said the company strengthened its protocols and procedures to combat fraud and protect customers. This included enhanced identity verification, customer fraud warnings, and lower transaction limits for its customers.

The company revealed a major shift in the regulatory environment for Bitcoin ATM operators, with increasingly stringent compliance obligations. Companies are facing new transaction limits, bans on Bitcoin ATMs in some jurisdictions, lawsuits, and regulatory enforcement.

These impacted Bitcoin Depot’s business and financial position. The company’s current business model has become unsustainable under these circumstances. Notably, Bitcoin Depot reported a 49.2% YoY decline in revenue in Q1 2026 and swung to a $9.5 million net loss.

Alex Holmes was appointed Chief Executive Officer and Chairman of the Board following Scott Buchanan’s decision to step down in March this year. Bitcoin Depot founder Brandon Mintz transitioned from Executive Chair to a non-executive member of the board.

BTM Stock Crash

BTM stock price closed 5.4% higher at $2.93 on Friday. The intraday low and high were $2.56 and $3.19, respectively. However, it has dropped more than 20% in overnight trading, according to Yahoo Finance.

The stock crashed more than 42% last week, dragging the year-to-date loss to 67%. The bankruptcy announcement adds further uncertainty for Bitcoin Depot shareholders.

Meanwhile, BTC price dropped to $76 lows today amid the broader crypto market crash. The 24-hour low and high are $76,678 and $78,539, respectively. Furthermore, trading volume has increased by 13% over the last 24 hours amid profit taking.