Coin Cloud, one of the largest Bitcoin ATM operators in the US and Brazil, filed for bankruptcy on January 8, leaving nearly $500 million in liabilities. The crypto winter and the collapse of large companies such as FTX, Alameda Research and Blockfi, among others, have left Coin Cloud suffering its consequences.
According to Coin Cloud filings, its biggest creditor would be Genesis Global Trading, a subsidiary of Digital Currency Group, to whom the company owes more than $100 million for an unsecured loan. On the other hand, its second-largest creditor, Cole Kepro, is owed roughly $8.5 million, a far cry from what Genesis is owed. According to Coin Cloud, the company has between $50 million and $100 million in assets from about 10,000 creditors.
The rise and fall of Coin Cloud
In January 2022, Coin Cloud launched as the largest digital currency machine operator in the US, with more than 1,100 Bitcoin ATMs installed worldwide. The company was looking to expand its networks to major US retail chains as demand for Bitcoin ATMs had accelerated during the pandemic, far exceeding company expectations.
Coin Cloud’s own statistics reveal 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 bonuses of up to $25 in BTC for customers who buy $150 in cryptocurrencies through any of its ATMs.
However, the growing cryptocurrency ATM industry suffered a sharp decline in mid-2022 due to the crypto winter and the price correction of Bitcoin (BTC), which lost around 70% of its value after hitting an all-time high of $69. 000 in November 2021, as reported by Cryptopotato.
The Growing Bitcoin ATM Industry
The global cryptocurrency ATM industry remains a sprawling sector in the crypto ecosystem despite the headwinds service providers are facing during recent bearish times.
According to data from CoinATMRadar, 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 world. total number of ATMs worldwide.
Despite the challenges and scary news announced by Coin Cloud, the demand for cryptocurrency ATMs continues to grow, and the industry remains a prominent player in the crypto ecosystem. The number of crypto ATMs deployed globally remains relatively small compared to the number of fiat ATMs, exceeding 3.2 million machines worldwide. This highlights the potential for growth in the cryptocurrency ATM industry.
Other crypto ATM companies have not reported any financial problems. In fact, recently, crypto ATM provider BitStop revealed that it acquired Genesis Coin to further expand its reach, now controlling over 31.9% of all crypto ATMs worldwide.
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This post World’s Leading Bitcoin Coin Cloud ATM Provider Files for Bankruptcy
was published first on https://cryptopotato.com/leading-global-bitcoin-atm-provider-coin-cloud-files-for-bankruptcy/