Despite the fact that the bear market seems to have taken a pause, another company has filed for bankruptcy in the cryptocurrency industry according to a filing in Nevada’s Bankruptcy Court. Coin Cloud, one of the largest Bitcoin ATM operators in the world announced that it has filed for bankruptcy. The company is the owner of over 4,000 Bitcoin and cryptocurrency ATMs mostly located in the United States and Brazil.
Coin Cloud Bitcoin ATM Operator Files for Bankruptcy
The large Bitcoin ATM operator Coin Cloud has filed for bankruptcy at the Nevada Bankruptcy Court according to filings dated February 7th. This is one of the latest companies in the cryptocurrency industry that declared bankruptcy after the powerful bear market that started back in November 2021 when Bitcoin hit an all-time high of $69,000.
The company could have liabilities between $100 million and $500 million. At the same time, the company has also close to 10,000 creditors. Genesis Global Trading is also the largest creditor of the company. At the moment, there are no further details about what will happen with the multiple ATMs that are located in multiple jurisdictions and how they are going to manage their business from now on.
Bitcoin ATMs became very useful over the last few years for people that didn’t want to get access to Bitcoin and other virtual currencies using centralized cryptocurrency exchanges. These Bitcoin ATMs are located in central spots in multiple cities and users can deposit cash and purchase a wide variety of digital currencies. Additionally, in some cases, Bitcoin ATMs could also let users withdraw cash, making it possible to sell digital assets as well.
According to Coin ATM Radar, there are currently 38340 Crypto ATMs around the world. Right now, The United States, Canada, Spain and Australia are the countries with the largest number of Bitcoin ATMs located in different places. The United States has currently 33660 Bitcoin ATMs, Canada 2645, Spain 272, and Australia 251.
This shows that there is a clear interest in using these types of crypto services in many different countries. Companies that want to operate in this industry might require some licenses depending on the local regulations, but most countries are Bitcoin ATM-friendly.
Another thing that we should take into consideration is that the Bitcoin ATM operator has to pay a renting. That means that when a company finds a place where to leave the Bitcoin ATM, they have to pay regular fees, which are taken as a commission for purchases and sales.
Let’s say that a person wants to buy Bitcoin and the market price of Bitcoin is currently $23,000. The ATM operator will likely apply a commission that tends to range between 1% and 12% depending on the Bitcoin ATM operator, the location, and the business strategy of the company. The same happens when a person decides to sell BTC or other cryptocurrencies for cash. There will be a fee applied for the transaction, which is usually higher than the one that people can find in centralized crypto exchanges.