Bitcoin Depot Faces 'Substantial Doubts' About Continuing Operations

Cryptocurrency ATM company Bitcoin Depot reported “substantial doubts” about the company’s ability to continue operating amid ongoing litigation and a challenging regulatory environment.

In a Form 10-Q filing with the US Securities and Exchange Commission (SEC) on Tuesday, Bitcoin Depot chief financial officer David Gray reported that the company had accrued more than $20 million in legal judgments in the fourth quarter of 2025 and “ongoing litigation matters.” The company also reported “substantial year-over-year declines in revenue” amid US states and municipalities passing laws and regulations banning or restricting crypto ATMs.

“As a result of these factors, management has concluded that substantial doubt exists about the Company’s ability to continue as a going concern,” said the report.

Source: SEC

The litigation affecting Bitcoin Depot included $1.9 million paid to Maine's Consumer Credit Protection Bureau in January, with the company facing additional lawsuits from Massachusetts, Iowa and other state-level authorities. Individual municipalities have also been passing ordinances or laws restricting crypto kiosks and ATMs amid concerns that residents may be victims of scams.

Related: Crypto ATM losses surge 33% in 2025 as AI superpowers scams: CertiK

According to its SEC filing, Bitcoin Depot reported that its revenue decreased by $80.7 million for the three months ending March 31 compared to that in the first quarter of 2025, “primarily due to a decrease in transaction volume driven by a combination of regulatory impacts and enhanced compliance controls.” The company also reported a net loss of $9.5 million over the same period.

In March, Bitcoin Depot appointed Alex Holmes as CEO, replacing Scott Buchanan, who served in the position for three months. Holmes was the CEO of MoneyGram from 2016 until 2024, where, according to Bitcoin Depot, he had a reputation for “global regulatory compliance.”

Shares of Bitcoin Depot on the Nasdaq under the ticker BTM declined by more than 40% in the previous five days, from $5.01 to $2.93.

Canada weighing countrywide crypto ATM ban

In April, the Canadian government released its Spring Economic Update for 2026, which said policymakers “propose to ban crypto ATMs” in response to scammers and criminals using the machines for money laundering. Under the proposal, Canadians would still be allowed to buy digital assets from brick-and-mortar money services businesses.

Bitcoin Depot reported to have about 220 machines deployed across Canada at the time of publication.