Bitcoin Depot’s Canadian subsidiary, BitAccess, has been ordered to pay $18.47 million following an arbitration ruling linked to a dispute with the defunct cryptocurrency ATM operator, Cash Cloud. The arbitration, conducted by the Canadian Arbitration Association, concluded that BitAccess’s alleged hardware and software failures caused significant operational disruptions to Cash Cloud’s network of ATMs.
Bitcoin Depot revealed in a regulatory filing that the tribunal’s decision came after hearings spanning from December 2024 to October 2025. The company stated that the award represents the total damages recognized by the tribunal based on Cash Cloud’s claims during the arbitration process. In response to the ruling, Bitcoin Depot announced plans to challenge the arbitral award and to vigorously defend both this arbitration and a separate legal matter unfolding in U.S. bankruptcy court.
Cash Cloud, which was known as Coin Cloud, once operated a vast network of approximately 5,700 Bitcoin ATMs before declaring bankruptcy. Their bankruptcy filing in February 2023 cited substantial debt exceeding $153.9 million, which they attributed to a combination of faulty machines, a failed partnership with BitAccess, a cyberattack, and alleged fraudulent behavior by a senior executive.
The dispute began in August 2022 when Cash Cloud alleged that BitAccess had breached a Master Purchase Agreement signed in January 2020 by providing defective hardware and inadequate software for their kiosks. Cash Cloud claimed that these defects rendered a significant portion of its ATM fleet inoperative, which resulted in substantial revenue losses.
In addition to the arbitration in Canada, Cash Cloud is pursuing a parallel lawsuit in the U.S. Bankruptcy Court for the District of Nevada. This lawsuit seeks the same amount of damages as the arbitration ruling and includes claims the tribunal in Canada could not address. Bitcoin Depot has voiced confidence in their defense, claiming that the U.S. legal action lacks merit and overlaps significantly with issues already being resolved in the Canadian arbitration.
On the financial front, Bitcoin Depot reported a 20% year-over-year increase in Q3 revenue, totaling $162.5 million, although it experienced a quarterly decline compared to Q2’s $172.1 million. Net income for the quarter rose dramatically by 139% to $5.5 million, yet it fell by approximately 55% compared to the previous quarter. The company also noted a decrease in earnings per share, which declined from $0.16 in Q2 to $0.08 in Q3. As of September, Bitcoin Depot operated over 9,000 Bitcoin ATMs across the U.S., Canada, and Australia.
In light of these developments, Bitcoin Depot continues to navigate complex legal challenges while attempting to maintain its operational growth and market presence in the cryptocurrency sector.
