Bitcoin Depot Stock Cracks After Filing For Bankruptcy – Even As Bitcoin ETF Assets Surge Past $100B

The Bitcoin ATM operator is winding down operations after steep losses, lawsuits, and tightening compliance rules hit its business model.

• Bitcoin Depot filed for Chapter 11, taking over 9,000 kiosks offline on Monday.
• Iowa, Massachusetts AGs sue operator for more than $30M in fraud losses tied to its machines.
• U.S. spot Bitcoin ETFs hold $104 billion in assets, with BlackRock’s IBIT alone being almost 2,000 times Bitcoin Depot's market cap on Friday.

Bitcoin Depot (BTM), once one of the largest U.S. crypto ATM operators, filed for Chapter 11 bankruptcy on Monday, shutting down the largest U.S. network linking cash to cryptocurrencies. This comes at a time when Wall Street has ramped up its Bitcoin (BTC) roadmap. U.S. spot Bitcoin exchange-traded funds (ETFs) topped $104 billion in assets last week. These contrasting developments show the shift in the crypto economy. 

The Nasdaq-listed company filed voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, taking its network of more than 9,000 kiosks offline and starting an orderly wind-down.

BTM shares plummeted 74.28% to $0.7535 in pre-market. On Stocktwits, retail sentiment around BTM remained in the ‘bearish’ zone, while chatter stayed at ‘low’ levels over the past day.