Bitcoin Bancorp Buys 2,547 Bitcoin Depot ATMs After Bankruptcy

Bitcoin Depot’s bankruptcy is reshaping the crypto ATM industry, allowing smaller competitors to acquire thousands of kiosks at deeply discounted prices as regulatory pressure weighs on the sector.

Bitcoin Depot filed for Chapter 11 bankruptcy protection in May after first-quarter revenue plunged 49% year over year. The company also swung from a $12.2 million profit to a $9.5 million loss during the period.

Bitcoin Bancorp, formerly known as Bullet Blockchain, emerged as the winning bidder for a significant portion of Bitcoin Depot’s assets. The Las Vegas-based digital asset infrastructure company agreed to acquire 2,547 crypto ATMs for $620,750, according to court records.

The price represents a steep discount compared with Bitcoin Depot’s previous asset valuations. At the end of 2025, the company valued its property and equipment at more than $26 million, with kiosks accounting for roughly 98% of the total.

Bitcoin Bancorp also agreed to pay another $110,500 for associated location agreements, intellectual property, trademarks, patents and the BitcoinDepot.com domain. The company said final closings remain subject to customary conditions and are expected to be completed during the upcoming quarter.

The acquisition comes as cryptocurrency ATMs face increasing scrutiny over their use in scams and financial fraud. Crypto ATM fraud losses reached $389 million in 2025, representing a 58% increase from the previous year.

Regulators worldwide have responded with tighter restrictions. The U.K. has prohibited unauthorized crypto ATMs, while Australia and Canada have also stepped up enforcement and proposed stricter measures.

Bitcoin Depot operated primarily in the U.S., where crypto kiosks remain legal in most states. However, CEO Alex Holmes said tougher compliance requirements, transaction limits, litigation and regulatory enforcement had made the company’s business model “unsustainable.”

Despite those challenges, Bitcoin Bancorp’s acquisition suggests the crypto ATM market is far from disappearing. Nearly 39,000 cryptocurrency ATMs were operating worldwide as of March, with 77.7% located in the United States. The industry also remains highly concentrated, with its 10 largest operators controlling 78.2% of all machines globally.