Bitcoin Depot's Chapter 11 Liquidation Plan Takes Effect
Bitcoin Depot Inc.'s chapter 11 liquidation plan became effective on August 24, 2026, moving the wind-down into a trust structure responsible for remaining assets, claims reconciliation, litigation, and creditor distributions. The company's effectiveness notice identifies August 11 as the date the court entered the confirmation order. Effective-date notice.
The confirmed plan provides a $500,000 settlement amount plus Series A Liquidation Trust Interests for allowed term-loan claims. General unsecured creditors receive Series B interests, which also cover qualifying equipment-financing deficiency claims. Equity interests receive no distribution. Those provisions establish creditor treatment; they do not establish that cash distributions have occurred. Confirmed plan, claim treatments and definitions.
Sources (4)
- Effective-date noticeCourt filing (opens in a new tab)
- Confirmed plan, claim treatments and definitionsCourt filing (opens in a new tab)
- Law360's confirmation reportlaw360.com (opens in a new tab)
- Bitcoin Depot Initiates Voluntary Chapter 11 Process to Facilitate an ...ir.bitcoindepot.com · May 18, 2026 (opens in a new tab)
| Debtor(s) | Bitcoin Depot Inc. and affiliated debtors |
| Court | U.S. Bankruptcy Court for the Southern District of Texas, Houston Division |
| Case Number | 26-90528 |
| Judge | Christopher M. Lopez |
| Confirmation Order Entered | August 11, 2026 |
| Plan Effective Date | August 24, 2026 |
The court, case number, judge, and milestone dates are identified in the effective-date notice. This account addresses the confirmed plan and its August 24 effectiveness; it does not establish subsequent distribution amounts or case closure.
Final Plan Specifies the Term-Loan Settlement
The confirmed plan contains nine classes of claims and interests. Its term-loan treatment combines the defined $500,000 Term Loan Settlement Amount with Series A trust interests. Equipment lenders receive proceeds of their applicable collateral, with qualifying deficiencies participating through Series B interests alongside general unsecured claims. Confirmed plan, Article IV and defined terms.
| Class | Claims or interests | Treatment under the confirmed plan |
|---|---|---|
| 1 | Senior Priority Lien Claims | Cash payment in full, return of collateral, or other unimpaired treatment |
| 2 | Other Priority Claims | Cash payment in full or other treatment consistent with the plan's priority provisions |
| 3 | Term Loan Claims | $500,000 Term Loan Settlement Amount and Series A Liquidation Trust Interests |
| 4 | Equipment Financing Agreement Claims | Applicable collateral proceeds; Series B interests for qualifying deficiencies |
| 5 | General Unsecured Claims | Pro rata Series B Liquidation Trust Interests |
| 6 | Intercompany Claims | Treatment governed by the plan; no estimated recovery stated in its summary |
| 7 | Subordinated Claims | No recovery |
| 8 | Intercompany Interests | Treatment governed by the plan; no estimated recovery stated in its summary |
| 9 | Equity Interests | No recovery |
These treatments come from the plan attached to the confirmation order. Its recovery summary estimates recoveries greater than zero for Classes 3, 4, and 5, without specifying a percentage for those classes. That estimate should not be read as a fixed cash recovery or a report of payment.
For equipment-financing claims, the plan allows principal of $963,921 for NFS and $1,411,106 for VFS, plus qualifying accrued interest and other fees, costs, or charges agreed to by the debtors or allowed by final court order under the specified standard. These allowed-principal figures are distinct from the amount each lender ultimately receives from collateral proceeds and trust distributions. Confirmed plan, Class 4 allowance and treatment.
The Liquidation Trust Takes Over Remaining Work
The confirmation order empowers the Liquidation Trust, from the effective date, to manage and liquidate vested assets, reconcile disputed claims, calculate and make distributions, and pursue retained causes of action. It also authorizes substitution of the trust or trustee for the applicable debtor in pending litigation. Confirmation order, paragraphs 21–22.
The trust's litigation rights matter because the plan's distributions are not limited to proceeds from kiosk sales. The confirmation order preserves retained causes of action notwithstanding effectiveness, subject to the plan's settlements and releases. The plan materials also describe a creditors' committee investigation intended to identify valuable estate claims and improve the value of Series B interests. Confirmation order and attached plan, Committee Investigation.
Release scope remains an important qualification to that litigation authority. Law360 reported that the judge narrowed third-party releases at confirmation to conduct following the bankruptcy filing. The order separately finds the releases consensual and preserves specified litigation rights; those provisions must be read together when assessing potential trust recoveries. Law360's confirmation report, confirmation order.
Kiosk Shutdown Led to Multiple Asset Sales
Bitcoin Depot announced its chapter 11 process on May 18, 2026, stating that it intended to wind down operations and sell assets in the Southern District of Texas. Company announcement.
The business being wound down extended beyond its machines. According to the disclosure statement attached to the confirmation order, Bitcoin Depot operated approximately 9,700 owned and leased kiosks as of December 31, 2025. Its BDCheckout program was available at approximately 16,300 retail locations across North America. Confirmed plan materials, Company Overview.
The debtors traced the revenue contraction to lower transaction volume driven by regulatory impacts and enhanced compliance controls. They reported that, after implementation of identification requirements for transactions of any amount in October 2025, first-quarter 2026 revenue fell $80.7 million, or 49.2%, from the prior-year quarter. The same account describes the new management team's decision to take the machines offline and focus on asset monetization. These are the debtors' explanations of the decline. Disclosure statement, events leading to chapter 11.
The sale process subsequently moved beyond the initial auction timetable. The July 30 plan materials report that the court entered four sale orders on July 8 and July 10, followed by six additional sale orders on July 24. They also describe continued marketing of remaining assets. Those approvals establish authorization for sales; they do not, by themselves, establish closing proceeds or the completion of every transaction. Confirmed plan materials, postpetition sales process.
Effectiveness Notice Sets Administrative Deadlines
The effective-date notice states a September 23, 2026 deadline for requests for payment of Administrative Expense Claims and an October 8, 2026 deadline for Professional Fee Claims. It also sets out separate timing rules for rejection-damages claims. Kroll serves as the noticing and claims agent identified in the notice. Effective-date notice.
The next economic question is what the trust realizes from remaining assets and retained litigation, and how allowed claims and administration costs affect distributions. The confirmed plan supplies the treatment framework; its estimates do not resolve the ultimate value of the Series A and Series B interests. Confirmed plan and liquidation-trust authority.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.