Bitcoin Depot, a leading Bitcoin ATM provider, has filed for Chapter 11 bankruptcy in the Southern District of Texas, citing significant financial and regulatory challenges. The company announced plans to wind down operations and sell its assets, with its network of over 9,000 kiosks going offline immediately. This move follows a sharp decline in financial performance, with first-quarter revenue dropping 49.2% year-over-year and gross profit plummeting by 85.5%. The company reported a net loss of $9.5 million, a stark contrast to the $12.2 million profit recorded in the same period last year. The bankruptcy filing highlights the impact of increased regulatory pressures, including stricter identity verification requirements and state-level restrictions, which have severely affected Bitcoin Depot's business model. The company has also faced over $20 million in accrued legal judgments, further straining its financial position. As regulatory scrutiny intensifies, the future of Bitcoin ATMs remains uncertain, with potential buyers considering selective relaunches in states without bans, while others may exit the market due to unprofitable operations.