Las Vegas-based company Coin Cloud, known for operating over 4,000 Bitcoin ATMs across the United States and Brazil, has announced its filing for Chapter 11 bankruptcy protection.
With liabilities estimated between $100 million and $500 million, the firm’s largest creditor is Genesis Global Trading, a subsidiary of Digital Currency Group, according to the court filing.
Bitcoin ATM Giant Rebuilding for a Brighter Future
In a statement, Coin Cloud’s founder and CEO, Chris McAlary, assured customers and creditors that the company would continue to operate during its Chapter 11 reorganization process.
The move is aimed at reworking the company’s debt, protecting the interests of creditors, and emerging as a stronger and more financially stable business. Coin Cloud has faced several challenges in the rapidly evolving world of cryptocurrencies.
McAlary said:
We are announcing today that our company has filed for Chapter 11 reorganization. This decision will allow us to rework our debt, protect the interests of our creditors, and emerge as a stronger, more financially stable company.
The Bitcoin ATM industry faced a sharp decline in the second half of 2022, with the integration of cryptocurrency into existing ATMs putting additional pressure on purpose-built Bitcoin ATMs like those operated by Coin Cloud.
In response, the company made drastic cost cuts to maintain its profitability. Despite these challenges, McAlary remains optimistic about the future of the cryptocurrency industry and Coin Cloud’s role in it.
The company claims on its website to have over 5,000 ATMs handling over 40 cryptocurrencies and was ranked second in the world by the number of ATMs with 4,826 machines, almost all of which were located in the United States.
The company’s related entities in Brazil are not undergoing corporate restructuring and are operating normally, according to McAlary.
However, the future may be uncertain for Coin Cloud, but their commitment to the crypto industry’s growth remains strong. As the company moves forward with its debt restructuring efforts, they hope to emerge as a leading player in the world of Bitcoin and other digital currencies.
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