Bitcoin Depot issued a “going concern” warning on Tuesday, flagging substantial doubt over whether the world’s largest crypto ATM operator can survive the next 12 months.
In the notice, Bitcoin Depot stated that it needs additional time to finalize its formal financial statements for the first quarter of 2026, attributing the delay to ongoing efforts to resolve an internal accounting weakness that stemmed from “cash in transit.”
Decrypt has reached out to Bitcoin Depot for comment.
In preliminary financial results, Bitcoin Depot reported a 49% year-over-year drop in revenue, generating roughly $83.5 million in the three months ended March 31. The firm cited a decrease in transaction volume prompted by shifts in regulation and enhanced compliance controls.
The company also attributed surging operating expenses to increased litigation costs, contributing to a net loss of $9.5 million compared to a profit of $12.2 million a year ago. Arguing that it has adequate measures in place to protect customers, the company is currently fighting high-profile lawsuits spearheaded by attorneys general in Massachusetts and Iowa.
During the first quarter, the company’s cash and cash equivalents saw a $21.6 million drawdown. That left the company, which enables people to exchange cash for crypto, with $44 million. Bitcoin Depot noted its latest performance hasn’t been reviewed or audited.
U.S. authorities have warned that older Americans have been especially susceptible to an uptick in scams involving crypto ATMs, where bad actors convince victims to deposit cash in the machines before disappearing with funds that are sent to them in digital form.
