H.C. Wainwright Downgrades Bitcoin Depot to Neutral
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
H.C. Wainwright downgraded Bitcoin Depot to Neutral from Buy without a price target following the company's Chapter 11 filing and wind-down of operations. The decision was driven by a "materially worsening regulatory backdrop" for bitcoin ATM operators in the U.S., the analyst tells investors in a research note.
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Analyst Views on BTM
Wall Street analysts forecast BTM stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 0.718
Low
2.30
Averages
3.93
High
6.00
Current: 0.718
Low
2.30
Averages
3.93
High
6.00
About BTM
Bitcoin Depot Inc. is a Bitcoin ATM (BTM) operator and fintech company. The Company provides its users with simple means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to Bitcoin at Bitcoin Depot kiosks in 47 states and at thousands of name-brand retail locations in 31 states through its BDCheckout product. The Company has over 9,000 kiosk locations in North America. Its mobile app includes a buy online feature that connects consumers to a third-party service, Simplex powered by Nuvei, that allows consumers to buy Bitcoin without going to a kiosk or using BDCheckout. Its BTMs offer one-way exchange of cash-to-Bitcoin. The Company also operates a BTM device and transaction processing system, BitAccess, which provides software and operational capabilities to third-party BTM operators. The Company is the exclusive provider and operator of BTMs for Circle K in the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bitcoin Depot Files for Chapter 11 Bankruptcy Amid Regulatory Challenges
- Bankruptcy Filing: Bitcoin Depot, a major cryptocurrency ATM operator, filed for Chapter 11 bankruptcy on Monday, taking over 9,000 kiosks offline, marking the end of the largest U.S. network connecting cash to cryptocurrencies, which highlights the unsustainability of its business model under current regulatory pressures.
- Legal Action: The attorneys general of Iowa and Massachusetts have sued Bitcoin Depot for over $30 million in fraud losses, indicating significant legal challenges the company faces regarding compliance, which exacerbates its financial troubles and operational viability.
- Market Performance: Bitcoin Depot's shares plummeted 74.28% to $0.7535 in pre-market trading, reflecting investor pessimism about its future prospects, while retail sentiment on Stocktwits remained in the 'bearish' zone, indicating a lack of confidence in the company's recovery.
- ETF Comparison: In stark contrast to Bitcoin Depot's struggles, U.S. spot Bitcoin ETFs have amassed $104.29 billion in assets, with BlackRock's IBIT alone holding $64.63 billion, nearly 2,000 times Bitcoin Depot's market value, demonstrating the success of compliant ETF models in the current market landscape.
See More
Publicis Acquires LiveRamp for $2.5 Billion in Cash
- Acquisition Deal: Publicis Groupe has agreed to acquire LiveRamp for $2.5 billion in cash, with a purchase price of $38.50 per share, representing a 29.8% premium over its May 15 closing price, aimed at enhancing its data and AI capabilities, which is expected to drive future growth.
- Market Reaction: LiveRamp's stock surged 26%, reflecting positive market sentiment towards the acquisition, while Publicis also raised its growth targets for net revenue and headline EPS for 2027 and 2028, indicating confidence in future performance.
- Industry Impact: Dominion Energy's shares rose 12% as NextEra Energy is reportedly in talks to acquire Dominion in a mostly stock deal valued at approximately $66 billion, which would become the largest utility acquisition on record and significantly strengthen NextEra's position in the PJM power market.
- Bankruptcy Filing: Bitcoin Depot's stock plummeted 63% after the company filed for Chapter 11 bankruptcy protection in the U.S., seeking to wind down operations and pursue asset sales, primarily due to rising compliance costs and regulatory pressures that have severely impacted its financial position.
See More
Bitcoin Depot Files for Chapter 11 Bankruptcy Protection Amid Operational Wind Down
- Bankruptcy Filing: Bitcoin Depot has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, indicating severe financial distress as it seeks to wind down operations and sell its assets.
- Operations Halted: The company has taken its network of Bitcoin ATMs offline and filed several customary “first day” motions with the court to support the restructuring process, highlighting the urgency of its financial crisis.
- Compliance Pressures: CEO Alex Holmes noted that increasingly stringent compliance obligations, transaction restrictions, and litigation have materially impacted the company's business, rendering its current business model unsustainable, which underscores the regulatory challenges facing the industry.
- International Restructuring: Bitcoin Depot's Canadian entities will also be part of the U.S. court-supervised restructuring process, with plans to initiate proceedings in Canada while other international operations will be wound down under applicable foreign laws, indicating a comprehensive contraction of the company's global operations.
See More
Bitcoin Depot Initiates Voluntary Chapter 11 Bankruptcy Process
- Bankruptcy Filing: Bitcoin Depot has announced its voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate an orderly wind-down of operations and asset sales, highlighting the company's financial distress amid a tightening regulatory environment.
- Increased Regulatory Pressure: The company faces escalating compliance obligations from states, including new transaction limits and outright bans in certain jurisdictions, which have materially impacted Bitcoin Depot's business model, rendering its current operations unsustainable.
- Support from Stakeholders: CEO Alex Holmes expressed gratitude towards customers, suppliers, and employees for their support, emphasizing the company's efforts to enhance fraud prevention measures, such as improved identity verification and customer fraud warnings, although these initiatives have not prevented the decline in business.
- Global Business Contraction: Bitcoin Depot's network of ATMs has been taken offline, with its Canadian entities included in the U.S. court-supervised process, and the company expects to commence winding down operations under applicable foreign laws, indicating a significant contraction of its global business.
See More
BITCOIN DEPOT INC - AS OF APRIL 6, 2026, INCIDENT HAS NOT SIGNIFICANTLY AFFECTED COMPANY OPERATIONS - SEC FILING
Incident Overview: A Bitcoin-related incident has occurred, but it has not significantly affected company operations as of April 6, 2026.
Regulatory Context: The incident is mentioned in a SEC filing, indicating potential regulatory scrutiny or implications.
See More
Bitcoin Depot Appoints New CEO and Chairman
- Executive Transition: Bitcoin Depot announced the appointment of Alex Holmes as CEO and Chairman, succeeding Scott Buchanan who stepped down immediately, marking a significant leadership shift aimed at enhancing the company's competitiveness in global payments and fintech.
- Extensive Experience: Holmes brings over 16 years of experience from MoneyGram International, where he served as CFO and COO, and as CEO from 2016 to 2024, successfully transforming the company into a modern fintech operating in over 200 countries.
- Board Restructuring: Brandon Mintz will transition from Executive Chair to a non-executive board member and is expected to serve as an advisor to the CEO, indicating the company's strategy to maintain leadership stability while leveraging Mintz's extensive experience in building a large Bitcoin ATM network.
- Market Outlook: Bitcoin Depot anticipates a revenue decline of 30%-40% in 2026, prompting the company to diversify into fintech to address market challenges and seek new growth opportunities.
See More
Bitcoin Depot Files for Chapter 11 Bankruptcy Amid Regulatory Challenges
- Bankruptcy Filing: Bitcoin Depot, a major cryptocurrency ATM operator, filed for Chapter 11 bankruptcy on Monday, taking over 9,000 kiosks offline, marking the end of the largest U.S. network connecting cash to cryptocurrencies, which highlights the unsustainability of its business model under current regulatory pressures.
- Legal Action: The attorneys general of Iowa and Massachusetts have sued Bitcoin Depot for over $30 million in fraud losses, indicating significant legal challenges the company faces regarding compliance, which exacerbates its financial troubles and operational viability.
- Market Performance: Bitcoin Depot's shares plummeted 74.28% to $0.7535 in pre-market trading, reflecting investor pessimism about its future prospects, while retail sentiment on Stocktwits remained in the 'bearish' zone, indicating a lack of confidence in the company's recovery.
- ETF Comparison: In stark contrast to Bitcoin Depot's struggles, U.S. spot Bitcoin ETFs have amassed $104.29 billion in assets, with BlackRock's IBIT alone holding $64.63 billion, nearly 2,000 times Bitcoin Depot's market value, demonstrating the success of compliant ETF models in the current market landscape.
See More
Publicis Acquires LiveRamp for $2.5 Billion in Cash
- Acquisition Deal: Publicis Groupe has agreed to acquire LiveRamp for $2.5 billion in cash, with a purchase price of $38.50 per share, representing a 29.8% premium over its May 15 closing price, aimed at enhancing its data and AI capabilities, which is expected to drive future growth.
- Market Reaction: LiveRamp's stock surged 26%, reflecting positive market sentiment towards the acquisition, while Publicis also raised its growth targets for net revenue and headline EPS for 2027 and 2028, indicating confidence in future performance.
- Industry Impact: Dominion Energy's shares rose 12% as NextEra Energy is reportedly in talks to acquire Dominion in a mostly stock deal valued at approximately $66 billion, which would become the largest utility acquisition on record and significantly strengthen NextEra's position in the PJM power market.
- Bankruptcy Filing: Bitcoin Depot's stock plummeted 63% after the company filed for Chapter 11 bankruptcy protection in the U.S., seeking to wind down operations and pursue asset sales, primarily due to rising compliance costs and regulatory pressures that have severely impacted its financial position.
See More
Bitcoin Depot Files for Chapter 11 Bankruptcy Protection Amid Operational Wind Down
- Bankruptcy Filing: Bitcoin Depot has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, indicating severe financial distress as it seeks to wind down operations and sell its assets.
- Operations Halted: The company has taken its network of Bitcoin ATMs offline and filed several customary “first day” motions with the court to support the restructuring process, highlighting the urgency of its financial crisis.
- Compliance Pressures: CEO Alex Holmes noted that increasingly stringent compliance obligations, transaction restrictions, and litigation have materially impacted the company's business, rendering its current business model unsustainable, which underscores the regulatory challenges facing the industry.
- International Restructuring: Bitcoin Depot's Canadian entities will also be part of the U.S. court-supervised restructuring process, with plans to initiate proceedings in Canada while other international operations will be wound down under applicable foreign laws, indicating a comprehensive contraction of the company's global operations.
See More
Bitcoin Depot Initiates Voluntary Chapter 11 Bankruptcy Process
- Bankruptcy Filing: Bitcoin Depot has announced its voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate an orderly wind-down of operations and asset sales, highlighting the company's financial distress amid a tightening regulatory environment.
- Increased Regulatory Pressure: The company faces escalating compliance obligations from states, including new transaction limits and outright bans in certain jurisdictions, which have materially impacted Bitcoin Depot's business model, rendering its current operations unsustainable.
- Support from Stakeholders: CEO Alex Holmes expressed gratitude towards customers, suppliers, and employees for their support, emphasizing the company's efforts to enhance fraud prevention measures, such as improved identity verification and customer fraud warnings, although these initiatives have not prevented the decline in business.
- Global Business Contraction: Bitcoin Depot's network of ATMs has been taken offline, with its Canadian entities included in the U.S. court-supervised process, and the company expects to commence winding down operations under applicable foreign laws, indicating a significant contraction of its global business.
See More
BITCOIN DEPOT INC - AS OF APRIL 6, 2026, INCIDENT HAS NOT SIGNIFICANTLY AFFECTED COMPANY OPERATIONS - SEC FILING
Incident Overview: A Bitcoin-related incident has occurred, but it has not significantly affected company operations as of April 6, 2026.
Regulatory Context: The incident is mentioned in a SEC filing, indicating potential regulatory scrutiny or implications.
See More
Bitcoin Depot Appoints New CEO and Chairman
- Executive Transition: Bitcoin Depot announced the appointment of Alex Holmes as CEO and Chairman, succeeding Scott Buchanan who stepped down immediately, marking a significant leadership shift aimed at enhancing the company's competitiveness in global payments and fintech.
- Extensive Experience: Holmes brings over 16 years of experience from MoneyGram International, where he served as CFO and COO, and as CEO from 2016 to 2024, successfully transforming the company into a modern fintech operating in over 200 countries.
- Board Restructuring: Brandon Mintz will transition from Executive Chair to a non-executive board member and is expected to serve as an advisor to the CEO, indicating the company's strategy to maintain leadership stability while leveraging Mintz's extensive experience in building a large Bitcoin ATM network.
- Market Outlook: Bitcoin Depot anticipates a revenue decline of 30%-40% in 2026, prompting the company to diversify into fintech to address market challenges and seek new growth opportunities.
See More
