Coin Cloud, one of the largest Bitcoin ATM operators in the US and Brazil, filed for bankruptcy on Jan. 8, leaving nearly $500 million in liabilities. The crypto winter and the collapse of major companies including FTX, Alameda Research, and Blockfi, among others, have left Coin Cloud suffering its aftermath.
According to Coin Cloud’s filings, its top 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, his second largest creditor, Cole Kepro, owes about $8.5 million, a far cry from what he owes to Genesis. According to Coin Cloud, the company has assets from about 10,000 creditors ranging from $50 million to $100 million.
The Rise and Fall of the Coin Cloud
In January 2022, Coin Cloud presented itself as the largest operator of digital ATMs in the US after installing more than 1100 Bitcoin ATMs worldwide. The company looked to expand its networks to include major US retail chains as demand for Bitcoin ATMs had 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 distributed between the US and Brazil, supporting more than 40 cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin and more. In addition, the company offers BTC bonuses of up to $25 for customers who buy $150 in cryptocurrencies through one of their ATMs.
However, the growing cryptocurrency ATM industry took a sharp hit in mid-2022 due to the crypto winter and the price correction of Bitcoin (BTC), which lost about 70% of its value after hitting an all-time high of $69,000 in November 2021, as reported reported by Cryptopotato.
The growing Bitcoin ATM industry
The global cryptocurrency ATM industry remains an expanding sector in the crypto ecosystem despite the adversity service providers have faced in recent downturns.
According to CoinATMRadar data, the US has 33,281 ATMs installed, accounting for 86.8% of all Bitcoin ATMs in the world, followed by Canada with 2,554 ATMs, accounting for 6.7% of the world’s total number of ATMs.
Despite the challenges and scary news announced by Coin Cloud, the demand for cryptocurrency ATMs continues to grow, with the industry remaining a major player in the crypto ecosystem. The number of crypto ATMs deployed worldwide is still relatively small compared to the number of fiat ATMs, exceeding the 3.2 million machines worldwide. This underscores the potential for growth in the cryptocurrency ATM industry.
Other crypto ATM companies have not reported any 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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