Bitcoin Depot's Chapter 11 recognized in Canada as crypto ATM operator pursues wind-down

Bitcoin Depot Inc. and certain subsidiaries, which operated what it describes as the largest network of Bitcoin ATMs in North America, obtained recognition of its US Chapter 11 proceeding as a foreign main proceeding under Part IV of the CCAA on May 22.

The recognition proceeding is the Canadian component of a broader liquidation. Bitcoin Depot and affiliated debtors, including Canadian entities Digital Gold Ventures Inc., BitAccess Inc. and Express Vending Inc., commenced Chapter 11 cases in the US Bankruptcy Court for the Southern District of Texas on May 17. The stated purpose of the US cases is an orderly wind-down and liquidation of the debtors’ assets, including the Canadian debtors.

As of late 2025, the company operated approximately 9,700 owned and leased kiosks across 48 US states, 10 Canadian provinces and 6 Australian states, including approximately 300 kiosks in Canada. The kiosks generated approximately $613.6 million in revenue for FY2025, representing approximately 99.8% of total revenue. By the petition date, all kiosks had been taken offline.

The Canadian debtors are integrated into the US-led business. Digital Gold is an Ontario holding company. BitAccess is federally incorporated, maintains an Ottawa office, employs the 7 Canadian employees, operates the remaining Canadian bank account and holds software and firmware used on the company’s BTM devices. Express Vending is a British Columbia company responsible for Canadian installation, servicing and maintenance. The Canadian debtors could not continue operating without support from the US debtors.

As of the petition date, the Chapter 11 debtors had approximately $15.771 million in funded debt, including approximately $13.338 million under a credit facility with Silverview Credit Partners and approximately $2.433 million under equipment agreements. The Canadian debtors are guarantors under the Silverview facility and granted security over all or substantially all of their property. The debtors also anticipated that the prepetition secured lender would assert a $3.1 million exit fee and $198,784 in accrued unpaid interest.

Canadian litigation exposure is part of the restructuring backdrop. Cash Cloud, Inc. obtained an approximately $18.5 million arbitration award against BitAccess on November 20, 2025. A separate arbitral claim by Mohammed Adham against Digital Gold and BitAccess was dismissed on May 19, 2026. Canaccord Genuity Corp. also has Ontario proceedings against Lux Vending, LLC and Bitcoin Depot, seeking, among other things, $23 million in damages, with trial scheduled for 2027.

The filing followed escalating legal, regulatory and compliance pressure. Beginning in 2024, the company faced lawsuits and investigations from 11 US state agencies, many alleging that its platforms were being used by third parties to perpetuate fraud. The company was also subject to a voluntary information request from the SEC and an FTC investigation. In October 2025, Bitcoin Depot implemented KYC procedures requiring customer identification for any kiosk transaction. After those changes, revenues declined significantly, the company suffered net losses in Q4 2025 and Q1 2026, and Q1 2026 revenue fell 49.2% year over year.

New management moved quickly toward a court-supervised liquidation. After compliance-related resignations in February 2026 and new leadership appointments in March and April, the company retained Portage Point in April to assess the business model, liquidity and strategic alternatives. On May 1, the board authorized Chapter 11 contingency planning. On May 12, Bitcoin Depot filed a Form 12b-25 disclosing substantial doubt about its ability to continue as a going concern, citing litigation and regulatory pressures and their effects on revenue and operations.

The Chapter 11 plan is to monetize assets, not restart the kiosk network. The debtors intend to seek approval of bidding and sale procedures for a process to market and sell all or substantially all assets, use Chapter 11 to complete those sales and establish a liquidation trust for stakeholders. The record states a goal of confirming a liquidating plan within 45 to 60 days. The proposed Canadian supplemental relief supports that sale and liquidation process.

Alvarez & Marsal is the information officer. Portage Point is financial advisor, and Thomas Studebaker was appointed CRO. Counsel is Osler for the companies, Blakes for the information officer, and Bennett Jones for Silverview.