ATM operator closes thousands of locations after being strangled by regulation — including in California
Bitcoin Depot, a major Bitcoin ATM operator, has filed for Chapter 11 bankruptcy due to strict regulations impacting its business model. The company, which once operated nearly 9,700 ATMs nationwide, has seen its presence in California shrink significantly. Regulatory measures, particularly California's SB401, have limited daily Bitcoin purchases, contributing to the company's financial struggles.
- ▪Bitcoin Depot filed for Chapter 11 bankruptcy in the Southern District of Texas.
- ▪The company operated roughly 9,700 Bitcoin ATMs nationwide but has reduced its California locations to fewer than 200.
- ▪California's SB401 imposed a $1,000 daily purchase limit on Bitcoin ATMs, severely affecting the company's operations.
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Business ATM operator closes thousands of locations after being strangled by regulation — including in California By Kevin Barr Published May 21, 2026, 1:59 p.m. ET See more of our coverage in your search results. Add The California Post on Google A Bitcoin ATM giant that once flooded the nation with machines has filed for bankruptcy after strict state regulations — including in California — kneecapped its business model. Bitcoin Depot voluntarily filed for Chapter 11 bankruptcy in the Southern District of Texas and will begin winding down operations and selling off its assets, according to The Sun. The Atlanta-based fintech company operated roughly 9,700 Bitcoin ATMs nationwide, mostly in convenience stores and gas stations.
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