Bitcoin Depot finds itself under intense financial pressure after receiving a multi-million dollar payment order stemming from severe technical issues with its equipment. A Canadian tribunal recently ruled an arbitration award against Bitcoin Depot for $18.47 million, validating complaints about faulty hardware filed by Cash Cloud. In a regulatory filing, the company stated it “cannot predict with any degree of certainty” the final outcome, though it confirmed its intention to challenge the decision.
The legal dispute centers on BitAccess Inc., a software and hardware subsidiary acquired by the firm in 2021. According to the official report filed on November 24, the tribunal concluded that defects in the equipment caused massive financial losses to kiosk operator Cash Cloud. The hearings, which spanned from December 2024 to October 2025, determined that the supplied software left large parts of the ATM fleet inoperable.
This legal setback is significant because it validates allegations of technical negligence in critical cryptocurrency infrastructure, a pillar for adoption. Cash Cloud, which operated under the Coin Cloud brand, filed for bankruptcy citing these very software failures as a primary cause of its financial collapse. On the other hand, the situation highlights the operational risks faced by hardware provider companies in a market that demands absolute reliability to maintain end-user trust.
In addition to the conflict in Canada, the firm faces a parallel battle in the Nevada Bankruptcy Court for similar damages. Cash Cloud argues that certain claims exceed Canadian jurisdiction and seeks to duplicate financial compensation on U.S. soil. Bitcoin Depot maintains that the cases overlap substantially, calling the action “without merit,” however, there is a latent risk of double exposure if courts do not consolidate the ongoing legal disputes.
How will this financial blow affect ATM expansion?
The economic impact comes at a delicate time, showing mixed signals in the organization’s recent corporate performance. Although third-quarter revenue rose 20% year-over-year reaching $162.5 million, quarter-over-quarter metrics revealed a 55% drop in net income. Therefore, this arbitration award against Bitcoin Depot could significantly erode future earnings and investor confidence, given that earnings per share fell by half recently.
The company has pledged to vigorously defend itself to set aside the ruling, although precedents for overturning arbitrations are limited in the industry. As litigation progresses in the United States, market operators will watch whether legal liability slows the operational growth of North America’s largest ATM network. The outcome will define whether the current technical infrastructure can sustain the firm’s long-term commercial ambition without compromising its stability.
