Crypto ATM Industry Forced to Whiten Its Eyes, One of the Largest Bitcoin ATM Operators Finally Goes Bankrupt!
Coin Cloud, which is one of the largest Bitcoin ATM operators in the United States and Brazil, filed for bankruptcy this year, leaving nearly $500 million in liabilities. The crypto winter and the collapse of major companies such as FTX, Alameda Research and Blockfi, among others, have caused Coin Cloud to suffer the consequences.Based on Coin Cloud's filing, its largest creditor is Genesis Global Trading, a subsidiary of Digital Currency Group, to which the company owes more than $100 million in unsecured loans. On the other hand, its second largest creditor, Cole Kepro, is owed about $8.5 million, a far cry from the debt owed to Genesis. According to Coin Cloud, the company has between $50 million and $100 million in assets from about 10,000 creditors.In January 2022, Coin Cloud introduced itself as the largest operator of crypto ATM machines in the U.S., having installed more than 1100 Bitcoin ATMs worldwide. The company is looking for ways to expand its network to major US retail chains, as demand for Bitcoin ATMs has increased during the pandemic, far exceeding the company's expectations.Coin Cloud's own statistics reveal that the company operates more than 5,000 ATMs distributed between the US and Brazil, supporting more than 40 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin and more. Additionally, the company offers a bonus of up to $25 in BTC for customers who purchase $150 in cryptocurrency through any of their ATMs.However, the burgeoning cryptocurrency ATM industry experienced a sharp decline in mid-2022 due to persistent bearish sentiment and a correction in the price of Bitcoin (BTC), which lost about 70% of its value after hitting an all-time high of $69,000 on November 2021.The global cryptocurrency ATM industry remains a growing sector in the crypto ecosystem despite the difficulties faced by service providers during the recent downturn.According to CoinATMRadar data, there are 33,281 ATMs installed in the US, representing 86.8% of all Bitcoin ATMs in the world, followed by Canada with 2,554 ATMs, equivalent to 6.7% of the total number of ATMs worldwide.Although the market was shocked by this news, the demand for cryptocurrency ATMs continues to grow, with the industry remaining a leading player in the crypto ecosystem. The number of crypto ATMs in use globally is still relatively small compared to the number of fiat ATMs, exceeding 3.2 million machines worldwide. This highlights the growth potential in the cryptocurrency ATM industry.On the other hand, other crypto ATM companies have not reported any financial problems. In fact, recently, crypto ATM provider BitStop revealed it acquired Genesis Coin to further expand its reach, now controlling over 31.9% of all crypto ATMs worldwide.
Coin Cloud, which is one of the largest Bitcoin ATM operators in the United States and Brazil, filed for bankruptcy this year, leaving nearly $500 million in liabilities. The crypto winter and the collapse of major companies such as FTX, Alameda Research and Blockfi, among others, have caused Coin Cloud to suffer the consequences.
Based on Coin Cloud's filing, its largest creditor is Genesis Global Trading, a subsidiary of Digital Currency Group, to which the company owes more than $100 million in unsecured loans. On the other hand, its second largest creditor, Cole Kepro, is owed about $8.5 million, a far cry from the debt owed to Genesis. According to Coin Cloud, the company has between $50 million and $100 million in assets from about 10,000 creditors.
In January 2022, Coin Cloud introduced itself as the largest operator of crypto ATM machines in the U.S., having installed more than 1100 Bitcoin ATMs worldwide. The company is looking for ways to expand its network to major US retail chains, as demand for Bitcoin ATMs has increased during the pandemic, far exceeding the company's expectations.
Coin Cloud's own statistics reveal that the company operates more than 5,000 ATMs distributed between the US and Brazil, supporting more than 40 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin and more. Additionally, the company offers a bonus of up to $25 in BTC for customers who purchase $150 in cryptocurrency through any of their ATMs.
However, the burgeoning cryptocurrency ATM industry experienced a sharp decline in mid-2022 due to persistent bearish sentiment and a correction in the price of Bitcoin (BTC), which lost about 70% of its value after hitting an all-time high of $69,000 on November 2021.
The global cryptocurrency ATM industry remains a growing sector in the crypto ecosystem despite the difficulties faced by service providers during the recent downturn.
According to CoinATMRadar data, there are 33,281 ATMs installed in the US, representing 86.8% of all Bitcoin ATMs in the world, followed by Canada with 2,554 ATMs, equivalent to 6.7% of the total number of ATMs worldwide.
Although the market was shocked by this news, the demand for cryptocurrency ATMs continues to grow, with the industry remaining a leading player in the crypto ecosystem. The number of crypto ATMs in use globally is still relatively small compared to the number of fiat ATMs, exceeding 3.2 million machines worldwide. This highlights the growth potential in the cryptocurrency ATM industry.
On the other hand, other crypto ATM companies have not reported any financial problems. In fact, recently, crypto ATM provider BitStop revealed it acquired Genesis Coin to further expand its reach, now controlling over 31.9% of all crypto ATMs worldwide.
