Bitcoin Depot (NASDAQ:BTM), one of the world’s largest operators of Bitcoin (CRYPTO: BTC) ATMs, said on Monday it has initiated a voluntary Chapter 11 process to wind down operations and sell off its assets.

Bitcoin Depot To Close Down

Bitcoin Depot filed the proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, adding that all of its network of ATMs has been taken offline.

The firm added that its Canadian subsidiaries are included in the U.S. court process and that it will begin formal restructuring in Canada at the appropriate time.

Bitcoin Depot CEO Alex Holmes stated that “stringent compliance obligations” imposed by states, including new transaction limits and, in some jurisdictions, outright restrictions or bans on Bitcoin ATM operations, rendered the business economically “unsustainable.”

Bitcoin Depot’s Preliminary Q1 Numbers Disappointing

A Bitcoin ATM is a kiosk that allows users to exchange cash for Bitcoin or other cryptocurrencies, or sell cryptocurrency for cash, using a digital wallet.  Unlike traditional ATMs, they bypass banks.

Bitcoin Depot was launched in 2016 and rapidly grew into the largest operator of its kind in North America.

Bitcoin Depot’s preliminary first-quarter revenue declined 49.2% year-over-year, primarily due to lower transaction volume driven by regulatory changes and stricter compliance controls. The company reported a net loss of $9.5 million, compared with net income of $12.2 million in the prior-year quarter.

The firm filed a Form 12b-25 on May 12, stating it could not complete its quarterly Form 10-Q for the period ended March 31.

Price Action: Bitcoin Depot shares crashed 71% in pre-market, according to data from Benzinga Pro.

The stock underperformed over short, medium, and long-term periods with a poor Growth ranking per Benzinga’s Edge Stock Rankings.

Photo Courtesy: KeyFame on Shutterstock.com