You’ve probably noticed, a large, orange eyesore crammed uncomfortably into the corner of your local supermarket or perched ominously near the local petrol station. If you approach, the spectacle will persuade you to delve into your pocket and hand over cold, hard cash in return for fictitious money from the internet.
It’s the dreaded cryptocurrency ATM. These odd artifacts of the contemporary cultural moment have inundated American towns in recent years, but the peak days for the small bitcoin dispensers may be coming to an end. One of their most significant US operations is bankrupt.
About 7.9 percent of the bitcoin ATMs in the U.S. are provided by Cash Cloud. This report was submitted as a Chapter 11 bankruptcy petition to the bankruptcy court in Nevada. The company filed for bankruptcy only a few weeks after Cash Cloud’s largest financial backer, the cryptocurrency lender Genesis Global, did the same, becoming yet another casualty of the industry’s severe decline over the previous nine months.
The ATM provider with headquarters in Las Vegas markets its range of Coin Cloud cryptocurrency machines in both the U.S. and Brazil. On the other hand, reported filing for bankruptcy with assets between $50 million and $100 million, but liabilities between $100 million and $500 million. Additionally, between 5,001 and 10,000 creditors are listed in the filing for the company.
Founder and CEO of Coin Cloud Chris McAlary said in a statement that the bankruptcy would allow the business to “rework our debt, protect the interests of our creditors, and emerge as a stronger, more stable company”. McAlary continued, “I’m still optimistic about the future of the cryptocurrency industry.”
Crypto ATMs have been appearing in America’s less posh locations for the past few years, including truck stops, gas stations, and convenience stores, as the short-lived national glow-up for cryptocurrencies has intensified. There is no doubt that glow-up is over. According to Axios, the number of machines in the U.S. will increase between September 2020 and September 2022, growing by more than three times, reaching a minimum of 63,000 machines, according to one online calculation.