Chief financial officer David Gray cited more than $20 million in legal judgments accrued in the fourth quarter of 2025, alongside a wave of lawsuits from state regulators and a sharp drop in transaction volume.
Revenue fell by $80 million in the first quarter of 2026 compared to the same period a year earlier. The company also posted a net loss of $9.5 million over those three months.
Officials pointed to tightening regulations and enhanced compliance controls as the main reasons customers are using the machines less.
Massachusetts, Iowa, and other states have since filed their own actions against the company. Individual cities and towns have also moved to restrict or ban crypto kiosks, with local officials citing concerns about residents falling victim to scams.
In March, the company replaced CEO Scott Buchanan, who had held the position for just three months, with Alex Holmes.
Holmes ran MoneyGram from 2016 to 2024 and is known for his background in regulatory compliance — a skill set Bitcoin Depot clearly needs right now.
Leadership Shift, Uncertain RoadThe company’s SEC filing described the revenue decline as being driven by a combination of regulatory impacts and enhanced compliance controls.
Reports indicate Bitcoin Depot is trying to manage existing legal exposure while adapting to a market that looks very different than it did a year ago.
Whether the new leadership can stabilize the business remains to be seen. The machines are still running. The lawsuits are not stopping. And the regulatory walls are getting closer on both sides of the border.
Featured image from ICIJ, chart from TradingView
