Bitcoin Depot, the world’s largest crypto ATM operator, has issued a “going concern” warning flagging substantial doubt over whether the company can survive the next 12 months.
Revenue collapse and legal pressure
In preliminary results for Q1 2026, the company reported a 49% year-over-year drop in revenue, generating roughly $83.5 million in the three months ended March 31.
The firm blamed a decline in transaction volume driven by regulatory shifts and tightened compliance controls.
Operating expenses also surged due to increased litigation costs, pushing the company to a net loss of $9.5 million — compared to a profit of $12.2 million in the same period a year ago.
During the quarter, cash and cash equivalents fell by $21.6 million, leaving Bitcoin Depot with $44 million on hand.
State lawsuits and scam allegations
Bitcoin Depot is currently fighting high-profile lawsuits from attorneys general in Massachusetts and Iowa, who allege the company uses misleading pricing, knowingly facilitates crypto scams, and enforces a predatory refund policy.
The company has argued it has adequate measures in place to protect customers, and earlier this year said it would begin requiring personal IDs for every transaction at its kiosks.
An Iowa Supreme Court decision last year ruled the company was entitled to keep deposited cash, even as local authorities have taken aggressive steps to retrieve funds for fraud victims.
Hacks and a broader fraud crisis
Last month, Bitcoin Depot disclosed that hackers had stolen 50.9 bitcoin — worth nearly $4 million — through a security breach that gave attackers access to crypto accounts.
The company operates around 9,000 kiosk locations globally, but its stock has plummeted roughly 80% over the past year, closing at $2.86 on Friday.
Fraud involving crypto ATMs hit a record high in 2025, with the FBI’s Internet Crime Complaint Center reporting $389 million in losses — a 58% increase from 2024, with older Americans identified as especially vulnerable targets.
