Coin Cloud, the company behind the operation of digital currency ATMs in both the United States and Brazil, has declared Chapter 11 bankruptcy. The official filing took place on February 7th in the U.S. Bankruptcy Court for the District of Nevada.
Coin Cloud’s bankruptcy filing reveals that the company has debts ranging from $100 million to $500 million, with a creditor count between 5,001 and 10,000, and assets estimated between $50 million to $100 million. The largest creditor listed in the filing is Genesis Global Capital, a subsidiary of the bankrupt lending arm of Digital Currency Group. Genesis has an outstanding claim of over $108 million, significantly more than the next largest creditor owed over $8 million.
According to a report by Bloomberg on November 22nd, sources claim that Coin Cloud received an unsecured loan of approximately $100 million from Genesis and was in discussions with the company to secure additional funding to restructure a debt of around $125 million. At the time, Genesis was facing financial difficulties, and it remains uncertain if Coin Cloud was able to secure additional credit from them.
Coin Cloud has been a leader in the industry since 2014. In a blog post from January 2022, the company claimed to have over 1,100 ATMs and stated that it was in the midst of “hyper-growth.” However, the cryptocurrency ATM industry saw a decline in the latter half of 2022. Furthermore, traditional ATMs have added support for cryptocurrency, which has added competition to purpose-built crypto ATMs.
As per the information on its website, Coin Cloud operates over 5,000 ATMs that support more than 40 cryptocurrencies. At its peak, Coin Cloud was ranked second globally in terms of number of ATMs, with a total of 4,826 machines, almost all of which were located in the United States.
Joy Rice is a computer science graduate and crypto writer with a strong understanding of blockchain technology. She writes about the latest developments in the crypto industry, and is passionate about educating and informing readers about the potential uses of blockchain.