coindesk.com
The bankruptcy of the cryptocurrency ATM sector’s largest provider has opened the door for smaller firms to snap up their defunct kiosks for pennies on the dollar.
Bitcoin Depot (BTM) filed for Chapter 11 bankruptcy protection in May following a 49% collapse in first-quarter revenue compared to a year earlier and a swing from $12.2 million in profit to a $9.5 million loss in the same period.
Just over a quarter of Bitcoin Depot’s more than 9,200 kiosks have been sold for less than $1 million, court records show.
The winner of the bidding process for Bitcoin Depot’s former locations was Bitcoin Bancorp (BCBC), a publicly traded digital asset infrastructure company, formerly known as Bullet Blockchain.
The Las Vegas-headquartered company won the bid to take over 2,547 ATMs for a total of $620,750. Bitcoin Depot valued its entire property and equipment, 98% of which was its kiosks, at more than $26 million in the the fourth quarter of 2025, the company’s last complete earnings report before bankruptcy.
Bitcoin Bancorp, whose shares trade at $0.04 on OTC Markets, is a small company compared to its predecessor, with a market cap of around $18.5 million, a fraction of Bitcoin Depot’s peak of around $400 million while it was listed on the Nasdaq.
The firm also bought the associated floorspace agreements, intellectual property, trademarks, patents and the BitcoinDepot.com domain name for another $110,500.
“Final closings remain subject to customary closing conditions,” Bitcoin Bancorp said on Wednesday. “The company currently expects the remaining closings to be completed during the upcoming quarter.”
Crypto ATMs crackdown
Crypto ATMs are machines that accept cash as payment for cryptocurrency. Their prevalence as a tool for scammers who build relationships with their victims online before inventing an emergency for which they need cash urgently. Crypto ATM fraud hit $389 million in losses in 2025, 58% higher than the year before.
The U.K.’s Financial Conduct Authority declared crypto ATMs illegal several years ago, while regulators in countries like Australia and Canada have also clamped down on them more recently.
The vast majority of Bitcoin Depot’s locations were in the U.S. where ATMs are legal in most states, but the company still blamed its decline on sterner regulatory measures, which CEO Alex Holmes said had made its business model “unsustainable.”