Bitcoin Depot, a leading Bitcoin ATM provider, has filed for Chapter 11 bankruptcy in the U.S. District Court for the Southern District of Texas, ceasing all operations and liquidating its assets. The company shut down over 9,000 ATMs globally on May 18, 2026. Financial disclosures revealed a 49.2% year-over-year revenue drop and an 85.5% decline in gross profit for Q1 2026, with a net loss of $9.5 million compared to a $12.2 million profit the previous year. The bankruptcy filing cites regulatory challenges, including state bans, stricter KYC requirements, and legal liabilities exceeding $20 million, as key factors in its operational decline. Bitcoin Depot's business model, reliant on high transaction fees, struggled under increased compliance costs and reduced transaction volumes. The company's collapse highlights the challenges faced by the Bitcoin ATM industry amid tightening regulations and evolving market dynamics.