Bitcoin Depot Stock Crashes 71% as Bankruptcy Triggers Panic Selling

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<a href="https://jpykr.com/btc-usd/">Bitcoin</a> Depot Stock Crashes 71% as Bankruptcy Triggers Panic Selling

Key Highlights

  • Bitcoin Depot stock fell about 71% in a single trading session, dropping from above $2 to around $0.77.
  • Trading volume spiked to about $5.4 million, showing heavy panic selling and strong investor exit pressure.
  • The company shut down its Bitcoin ATM network after filing for Chapter 11, with operations now being wound down and assets expected to be sold.

Bitcoin Depot, a company that operates cryptocurrency ATMs, experienced a significant drop in its stock price (BTM) on Monday. Shares fell approximately 71% after the company filed for bankruptcy protection in the U.S.

The stock started the day well, briefly trading over $2, but then fell to around $0.85 by the end of the day.

The market experienced a rapid and significant decline as many investors quickly sold their stock. While trading volume reached $5.4 million, the falling prices indicate that this activity is driven by selling, rather than new investment.

Meanwhile, the company’s overall value plummeted to about $8.82 million as its stock price continued to decline.

Volume spike amid heavy selling pressure

The chart clearly shows a significant price drop that caused a disruption in trading. The price fell sharply from $2.65, leaving a large gap on the chart where no trading activity was recorded. This sudden move suggests widespread panic, as the price decreased too rapidly for typical buying and selling to occur.

The stock has fallen dramatically, losing 99% of its value since reaching its peak of $78. It’s shown signs of being oversold on two occasions, indicating a very low probability of a price rebound. Essentially, there was heavy selling pressure with almost no buying interest.

Bitcoin Depot faces regulatory and operational pressure

Bitcoin Depot is a large company that provides Bitcoin ATMs. At one point, they operated over 9,000 machines in the United States, Canada, Australia, and Hong Kong.

The company previously allowed people to buy cryptocurrency with cash using ATMs located in places like stores and gas stations. However, it has now closed down these ATMs as part of its bankruptcy. Rather than continuing to operate, the company is shutting down and selling off its possessions.

The company is currently facing challenges due to increased regulatory scrutiny of crypto ATMs, which is impacting its business model.

Several U.S. states are now limiting how much money can be exchanged daily – some as little as $500 – and some are cracking down on or prohibiting cryptocurrency transactions at ATMs. Police are also cautioning people about scams involving Bitcoin ATMs, particularly cases where people are tricked into sending money through them. The company anticipates these fraud prevention measures will decrease revenue by 30-40% in 2026.

Cyberattacks and leadership added to the pressure

Before filing for bankruptcy, Bitcoin Depot experienced a series of difficulties. In March, a cyberattack resulted in the theft of approximately 50.903 Bitcoin, worth around $3.665 million.

Shortly after that, the company appointed Alex Holmes as its new CEO, replacing Scott Buchanan. Holmes acknowledged the company was facing significant challenges and stated that its existing business approach wasn’t sustainable.

The company is filing for bankruptcy in the U.S., which affects all of its businesses here. Its Canadian operations are dealing with a different bankruptcy process, and its international businesses in countries like Australia and Hong Kong are being shut down according to local laws. Now, the company’s property – things like equipment, software, and agreements with retailers – may be sold off. Legal and financial professionals are managing this process as the company ceases operations.

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2026-05-18 21:26