Bitcoin Depot, a publicly listed cryptocurrency ATM operator, is facing increasing regulatory scrutiny in the United States as its stock plunges and revenue outlook weakens.
On March 9, the Connecticut Banking Commissioner, via the Consumer Credit Division, issued a temporary cease-and-desist order against Bitcoin Depot Operating, effectively suspending its money transmission license in the state.
The order alleges several violations of the Connecticut Money Transmission Act, including failing to meet minimum net worth requirements, charging excessive fees, and not fully reimbursing customers affected by scams.
The company also revised its 2026 revenue forecast downward in its fourth-quarter and full-year 2025 financial report released Monday. It disclosed a 56% year-to-date drop in its stock price along with workforce reductions. Despite the challenges, Bitcoin Depot remains one of the largest crypto kiosk operators in the US, with over 8,400 locations as of the end of 2025.
Revenue outlook dims for 2026
Bitcoin Depot reported $615 million in revenue for the full year 2025, marking a 7% increase from 2024. However, net income declined to $5.1 million from $7.8 million the previous year.
Fourth-quarter revenue fell to $116 million from $136.8 million in the same period a year earlier, which the company attributed to new state regulations and stricter compliance measures.
Looking ahead, Bitcoin Depot signaled a weaker revenue outlook for 2026, pointing to ongoing regulatory changes and compliance demands that could further impact transaction volumes.
“The Company expects revenue for the core business in 2026 to be down in the range of 30% to 40%. This estimate reflects the uncertainty presented by the dynamic regulatory environment and enhanced compliance standards.”
In a separate filing dated March 11, Bitcoin Depot revealed that its chief operating officer, Elizabeth Simer, had stepped down, though no reason was provided for her departure.
Bitcoin Depot faces scrutiny across multiple states
The cease-and-desist order in Connecticut adds to a growing list of enforcement actions against the company in other states. In February, the Massachusetts Attorney General filed a lawsuit alleging that Bitcoin Depot facilitated cryptocurrency-related scams.
That same month, Iowa Attorney General Brenna Bird sued Bitcoin Depot alongside CoinFlip, accusing both companies of failing to adequately protect consumers from crypto ATM fraud.
Earlier, in January, Bitcoin Depot reached a $1.9 million settlement with Maine’s Bureau of Consumer Credit Protection. The agreement required the company to compensate victims of scams linked to its kiosks and adhere to state licensing regulations.
Shares of Bitcoin Depot (BTM) have been in a prolonged decline since mid-2025, plunging about 91% from their peak of $45.4 in June. The stock is also down 56% so far this year, closing at $4.06 on Tuesday, according to TradingView.
