Bitcoin Depot stock crashes 71% premarket after Chapter 11 filing
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- Bitcoin Depot filed for Chapter 11 bankruptcy, triggering a pre‑market share plunge of more than 70% (about 71%).
- Bitcoin Depot announced that its Canadian entities will be part of the restructuring, with separate Canadian proceedings, while all remaining non‑US entities will shut down under local law.
- Bitcoin Depot’s Nasdaq‑listed stock (ticker BTM) has fallen roughly 95% since its July 2023 debut, trading near $2.93.
- Roshan Dharia, CEO of Echo Base, warned that the filing previews a broader squeeze on US crypto‑ATM operators as states tighten consumer‑protection standards and liability for scams.
- U.S. and Canadian regulators have intensified scrutiny of crypto ATMs, citing fraud complaints and proposing bans in several jurisdictions.
Why it matters: Investors in Bitcoin Depot lose ~70% of their holdings as the stock collapses, while crypto‑ATM operators face tighter U.S. consumer‑protection rules that shrink margins and force network closures.
