Bitcoin Depot, previously the largest bitcoin ATM operator in North America and a Nasdaq-listed firm, has filed for Chapter 11 bankruptcy as it begins shutting down its operations.

The Atlanta-based company filed a voluntary petition in the U.S. Bankruptcy Court for the Southern District of Texas on Monday, outlining plans to wind down its business and liquidate assets under court supervision. Its entire ATM network has already been taken offline.

At its peak, Bitcoin Depot operated more than 9,200 kiosks across the U.S., Canada, and Australia, providing users with a way to convert cash into bitcoin at retail locations. The company went public in 2023, marking a period of rapid expansion.

Its financial performance, however, has since deteriorated sharply. Preliminary first-quarter results showed revenue declining 49% year-over-year, while the firm swung from a $12.2 million profit to a $9.5 million loss. Gross profit also plunged 85% to $4.5 million.

CEO Alex Holmes said tightening regulations played a major role in the company’s decline. He pointed to stricter compliance requirements, transaction limits, and outright bans in certain jurisdictions, along with growing litigation and enforcement actions. These pressures, he said, ultimately made the company’s business model unsustainable.

Bitcoin Depot is also facing a significant lawsuit brought by attorneys general in Massachusetts and Iowa, alleging that its machines facilitated crypto-related scams. Losses linked to crypto ATM fraud surged to a record $389 million last year, up 58% from 2024, prompting increased scrutiny from regulators.

The bankruptcy proceedings include the company’s Canadian subsidiaries, while its other international operations will be wound down in line with local laws.

The company’s collapse comes even as the broader crypto industry sees rising institutional adoption, supported by investment vehicles such as ETFs and legislative progress including the Clarity Act.