Connecticut no longer permits the operation of Bitcoin Depot. The corporation thinks it will make less money in 2026 because of increasing government pressure and a large decline in its stock price.
Bitcoin Depot, a publicly traded cryptocurrency ATM operator, is under more and more regulatory pressure in the US because its stock price is falling quickly and its revenue projection is bleak.
The Consumer Credit Division of the Connecticut Banking Commissioner advised Bitcoin Depot to stop conducting business right away on March 9. This resulted in the suspension of the state’s money transfer licence.
The order lists several alleged violations of the Connecticut Money Transmission Act, such as failing to maintain a minimum net worth, overcharging, and providing incomplete reimbursements to customers who were scammed.
The company’s fourth-quarter 2025 and full-year 2025 financial figures, which came out on Monday, showed that it had cut its sales forecast for 2026. It said that its stock had dropped 56% so far this year and that it had to lay off workers. One of the biggest kiosk companies in the US is Bitcoin Depot. Its earnings report estimates that by the end of 2025, it had more than 8,400 kiosk outlets.
Revenue outlook weakens amid compliance costs
The company’s sales for the full year 2025 were $615 million, which is 7% more than in 2024. However, its net income declined from $7.8 million to $5.1 million. The company claimed that Q4 revenue fell from $136.8 million a year earlier to $116 million because of new state rules and more compliance efforts.
Bitcoin Depot also said that revenues would be lower in 2026 because of continuous changes in regulations and compliance procedures that could lower the number of transactions:
The company thinks that sales for its main business will decline by 30% to 40% in 2026. This estimate takes into account the uncertainty caused by changing rules and stricter compliance standards.
Bitcoin Depot said in a different filing on March 11 that Elizabeth Simer, the company’s chief operating officer, had quit. The corporation didn’t say why.
Bitcoin Depot is being sued in more than one state.
Legal challenges expand across multiple states
Connecticut’s cease-and-desist order comes as Bitcoin Depot is already facing legal action in other jurisdictions. For example, in February, the Massachusetts Attorney General filed a complaint against the company, claiming it helped crypto scams.
In February 2025, Iowa’s Attorney General Brenna Bird sued Bitcoin Depot, saying that the corporation and CoinFlip had not done enough to protect customers from crypto ATM scams.
In January, Bitcoin Depot signed a $1.9 million consent deal with the Bureau of Consumer Credit Protection in Maine. The company committed to compensating customers deceived by its Bitcoin kiosks and adhering to state licensing regulations.
Source: TradingView
Since mid-2025, the price of Bitcoin Depot’s shares (BTM) has dropped 91%, from $45.4 in June to $4. TradingView said that the stock has dropped 56% this year and closed at $4.06 on Tuesday.