Benzinga - Coin Cloud, a Las Vegas-based company that operated more than 4,000 Bitcoin ATMs in the U.S. and Brazil, declared Chapter 11 bankruptcy.
The court filing estimated the company's liabilities to be between $100 million and $500 million, with Genesis Global Trading, a subsidiary of Digital Currency Group, as the largest creditor.
Despite the bankruptcy filing, Coin Cloud CEO Chris McAlary sought to assure customers and creditors that the company would continue its operations during the Chapter 11 reorganization process.
"We are announcing today that our company has filed for Chapter 11 reorganization," said McAlary.
"This decision will allow us to rework our debt, protect the interests of our creditors, and emerge as a stronger, more financially stable company," McAlary added,
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The Bitcoin ATM industry experienced a downturn in the latter half of 2022, with the integration of cryptocurrency into traditional ATMs putting additional stress on companies such as Coin Cloud, which specialized in purpose-built Bitcoin ATMs.
Despite the challenges, McAlary said he remained optimistic about the future of the cryptocurrency industry and Coin Cloud's role in it.
Coin Cloud boasted more than 5,000 ATMs handling more than 40 cryptocurrencies. The company was ranked second in the world by the number of ATMs, with nearly 4,826 machines located in the U.S.
The company's Brazilian subsidiary was not undergoing restructuring and functioning normally, according to McAlary.
Although the future might be uncertain for Coin Cloud, it moved forward with debt restructuring efforts and remained committed to becoming a leading player in the world of Bitcoin and other digital currencies.
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