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Leading Global Provider of Bitcoin ATM Coin Cloud Files for Bankruptcy
Coin Cloud, one of the largest Bitcoin ATM operators in the United States and Brazil, filed for bankruptcy on January 8, leaving it with nearly $500 million in liabilities. The crypto winter and the collapse of large companies such as FTX, Alameda Research and Blockfi, among others, have disappeared. Coin Cloud is suffering from the consequences. According to Coin Cloud's filings, its largest creditor would be Genesis Global Trading, a subsidiary of Digital Currency Group, to which the company owes more than $100 million on an unsecured loan. On the other hand, the second largest creditor, Cole Kepro, has debts of about...
Leading Global Provider of Bitcoin ATM Coin Cloud Files for Bankruptcy
Coin Cloud, one of the largest Bitcoin ATM operators in the United States and Brazil, filed for bankruptcy on January 8, leaving it with nearly $500 million in liabilities. The crypto winter and the collapse of large companies such as FTX, Alameda Research and Blockfi, among others, have disappeared. Coin Cloud is suffering from the consequences.
According to Coin Cloud's filings, its largest creditor would be Genesis Global Trading, a subsidiary of Digital Currency Group, to which the company owes more than $100 million on an unsecured loan. On the other hand, the 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 assets from approximately 10,000 creditors between $50 and $100 million.
The rise and fall of Coin Cloud
In January 2022, Coin Cloud presented itself as the largest digital ATM operator in the US and has installed more than 1100 Bitcoin ATMs worldwide. The company wanted to expand its networks to major U.S. retail chains as demand for Bitcoin ATMs accelerated during the pandemic, far exceeding the company's expectations.
Coin Cloud's own statistics show that the company operates more than 5,000 ATMs spread between the US and Brazil, supporting more than 40 cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin and more. Additionally, the company offers BTC bonuses of up to $25 for customers who purchase $150 in cryptocurrencies through one of their ATMs.
However, the growing cryptocurrency ATM industry suffered a sharp downturn in mid-2022 due to the crypto winter and the price correction of Bitcoin (BTC), which lost about 70% of its value after reaching an all-time high of $69,000 in November 2021, as reported by Cryptopotato.
The Growing Bitcoin ATM Industry
Despite the adversities facing the global cryptocurrency ATM industry, it remains one of the fastest growing industries in the crypto ecosystem.
According to CoinATMRadar data, the US has 33,281 ATMs installed, accounting for 86.8% of the world's total Bitcoin ATMs, followed by Canada with 2,554 ATMs, accounting for 6.7% of the total number of ATMs worldwide.
Despite the challenges and scary news announced by Coin Cloud, demand for cryptocurrency ATMs continues to grow, with the industry remaining a major player in the crypto ecosystem. The number of crypto ATMs in use worldwide is still relatively small compared to the number of fiat ATMs, exceeding the 3.2 million machines worldwide. This highlights the growth potential in the cryptocurrency ATM industry.
Other crypto ATM companies have not reported financial problems. In fact, crypto ATM provider BitStop recently announced that it has acquired Genesis Coin to further expand its reach and now controls over 31.9% of all crypto ATMs worldwide.
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