- Coin Cloud, one of the largest Bitcoin ATM operators, has filed for bankruptcy with nearly $500 million in liabilities.
- The crypto winter and the collapse of major companies have taken a toll on Coin Cloud.
- Despite the recent challenges the cryptocurrency ATM industry faces, the demand for crypto ATMs continues to grow.
The Rise and Fall of Coin Cloud
The skies are getting a little stormy in the world of cryptocurrency ATMs. Coin Cloud, one of the largest Bitcoin ATM operators in the US and Brazil, filed for bankruptcy on January 8th, 2023, with nearly $500 million in liabilities. The company is feeling the thunder of financial hardship as they owe their largest creditor $100 million in an uncollateralized loan.
In January 2022, Coin Cloud was operating over 1,100 Bitcoin ATMs worldwide, making it the largest operator of digital currency machines in the US. The company planned to expand to major US retail chains, as the demand for Bitcoin ATMs was rising due to the pandemic.
Weathering the Storm
On February 8th, 2023, Coin Cloud’s Founder, CEO, and President, Chris McAlary, announced that the company had filed for Chapter 11 reorganization. Before its bankruptcy, Coin Cloud operated over 5,000 ATMs in the US and Brazil, supporting more than 40 cryptocurrencies and offering bonuses of up to $25 in BTC for customers who purchased $150 in cryptocurrencies through its ATMs.
According to McAlary, this reorganization will enable the company to address its debt and safeguard the interests of its creditors, allowing it to reemerge as a more financially secure and robust entity. While the recent bankruptcy of Coin Cloud may have ruffled a few feathers, the future of the crypto ATM industry is still seeing blue skies.
The Future of Crypto ATMs
The growing cryptocurrency ATM industry took a hit in mid-2022 during the crypto winter and the price correction of Bitcoin, which saw a 70% drop in value after reaching an all-time high of $69,000 in November 2021. However, the impact of the crypto winter did not hinder the growth of the global cryptocurrency ATM industry.
Despite the challenges faced by Coin Cloud and the recent crypto winter, the global cryptocurrency ATM industry continues to grow. According to CoinATMRadar, there are 33,281 ATMs installed in the US, making up 86.8% of all Bitcoin ATMs worldwide, followed by Canada with 2,554 ATMs.
The crypto ATM industry is a key player in the wider crypto ecosystem, as shown by the ongoing growth and expansion in the sector, despite having a relatively small number of ATMs compared to fiat machines worldwide. The future of the crypto ATM industry looks bright, even through these challenges.
On the Flipside
- The crypto winter has affected Coin Cloud, but some companies in the cryptocurrency ATM industry have remained stable, like Bitcoin Depot, which maintained its financial stability despite the crypto winter’s challenges.
- While the demand for cryptocurrency ATMs has continued to grow, the global cryptocurrency ATM industry has remained a small player compared to the number of fiat ATMs worldwide.
- The bankruptcy of Coin Cloud has created an opportunity for other crypto ATM providers to increase their market share.
Why You Should Care
The bankruptcy of Coin Cloud serves as a reminder of the volatility and unpredictability of the crypto market. The impact of the bankruptcy on the crypto market will be worth monitoring as other ATM companies may fill the demand left in its wake.
For more news about cryptocurrency ATM adoption:
Tether to Offer USDT in 24,000 ATMs Across Brazil – DailyCoin
For information on how crypto ATMs work:
Crypto ATMs: How Do They Work and How Are They Different from Fiat ATMs? – DailyCoin